The Commonwealth of Massachusetts
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PETITION OF:
The Commonwealth of Massachusetts
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PETITION OF:
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In the Year Two Thousand and Seven.
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An Act relative to rental vehicle and replacement vehicle transactions and services. |
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Notwithstanding any provisions of any general or special law to the contrary, no company which serves as a third party biller for a particular insurance company, whether a carrier or a producer, may additionally provide rental and replacement vehicle transactions and services for such insurance company. A third-party biller shall be defined as any company who processes, pays or monitors the payment of rental and replacement vehicle transactions and services on behalf of an insurance carrier or insurance producer.
Such third-party biller shall not be related to any rental and replacement vehicle company in any way. This includes stock ownership or such ownership by any direct family relative.
Such third-party biller shall file with the Office of the Insurance Commissioner statements of ownership every year on a prescribed schedule, or upon any material change in ownership.
All third-party billers shall file with the Office of the Insurance Commissioner all contracts held with specific insurance companies, either carriers or producers, which delineate the provisions of the business relationship, excluding the amount of consideration provided for third-party billing services.
Each violation resulting in a failure to file either the statement of ownership and/or agreements between insurance companies and third-party billers shall result in a fine of $5,000.00 per incident. Judgment of such violation shall be at the sole discretion of the Commissioner of Insurance.
Each violation of the first paragraph of this section shall result in a fine of $1,000.00. Judgment of such violation shall be at the sole discretion of the Commissioner of Insurance. Furthermore, the Office of the Insurance Commissioner shall create and make available, forms for reporting such violations to said office.