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By Mr. Mariano of Quincy, petition (accompanied by bill, House, No. 1012) of Ronald Mariano relative to the cancellation or modification of contracts of insurance producers. Financial Services. |
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 relating to the cancellation or modification of an insurance producer's contract. |
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. Section 163 of chapter 175 of the General Laws, as appearing
in the 2004 Official Edition, is hereby amended by striking out the third sentence, lines 10 through 19, and inserting in place thereof the following sentence:—
Except as otherwise provided, such notice of cancellation, modification or expiration issued by a company shall contain a provision stating that any agent receiving notice of such cancellation, modification or expiration may, within fifteen days after receipt thereof, make a written demand for reference to three referees of the question as to whether or not such cancellation, modification or expiration will so affect the renewal, continuation or replacement of any policies placed with the company through the efforts of the agent, or the services needed by any policyholder doing business with the company as a result of the efforts of the agent, as to justify renewal or continuation of any policies then in effect having been placed with such company by such agent.