By Mr. Nangle of Lowell, petition (accompanied by bill, House, No. 1042) of David M. Nangle relative to the investment of reserves by dental service corporations.  Financial Services.

The Commonwealth of Massachusetts

——————

PETITION OF:

David M. Nangle

——————

In the Year Two Thousand and Seven.

——————

An Act relative to the investment of reserves by dental service corporations.

    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.  Chapter 176 E of the General Laws is herby amended by striking out section 10, as appearing in the 2004 Official Edition, and inserting in place thereof the following section:

Section 10. the reserves of a dental service corporation shall be invested only in such securities as are permitted under chapter 175 for the investment of the reserves of insurance companies.  A dental service corporation shall have the right to acquire and own real estate to be occupied by itself in the transaction of its business. The commissioner may require any such corporation after its first full calendar year of doing business to accumulate and maintain a special contingent surplus, over and above its reserves and liabilities, in such amount as the commissioner may deem proper.  All other funds of a dental service corporation shall be invested only as is permitted by chapter 180A for the investment of institutional funds.

Section 2. this act shall take effect upon its passage.