Division of Insurance

On the afternoon of June 1, 2011, homes, businesses and property in portions of Western and Central Massachusetts suffered catastrophic damage as a result of severe weather conditions including tornadoes.  Recently, the Massachusetts Division of Insurance called a special examination of the top 25 home insurance companies and the Massachusetts Property Insurance Underwriting Association (“FAIR Plan”) for the purpose of reviewing and evaluating the processing of claims submitted as a result of the tornadoes. The report documents that of the 11,000+ claims submitted by owners of homes, businesses and vehicles and other property, more than 98% were processed within 120 days of the tornado.  Insurance payments to date total nearly $2 million, essential funds which are allowing claimants to rebuild their homes and their lives. 

For a link to the full report, click here  .

On May 1, 2012, the Supreme Judicial Court for Suffolk County approved the Plan of Liquidation filed by Joseph G. Murphy, Commissioner of Insurance of the Commonwealth of Massachusetts, as Trustee of the Eastern Casualty Liquidating Trust, successor to all of the assets and liabilities of Eastern Casualty Insurance Company. The Plan of Liquidation governs future proceedings in the liquidation of the Trust by providing claim determination procedures for the disposition of proofs of claim against Eastern Casualty, providing a claim amendment deadline for perfecting contingent or unliquidated claims, and specifying the applicable priorities of distribution. 

To view a copy of the Court’s Order Approving the Plan of Liquidation, click here  .  For a copy of the Trustee’s Notice to Claimants of Eastern Casualty Insurance Company, click here  .

On May 2, 2012, the Division of Insurance filed with the Secretary of the Commonwealth’s Regulations Division an emergency regulation, 211 CMR 153.00  , Continuity of Care Access to Comprehensive Cancer Centers, Pediatric Hospitals and Pediatric Specialty Units for Small Group Health Benefit Plans that Utilize Limited, Regional or Tiered Provider Networks.  

The emergency regulation provides guidance and definitions for terms set forth in Chapter 61 of the Acts of 2012, which amended M.G.L. c. 176J effective May 1, 2012.  The Division also has issued Bulletin 2012-03 to instruct health insurance carriers regarding compliance with Chapter 61 and the emergency regulation.

The Division will schedule and notice a public hearing on the emergency regulation in the near future.

Limited, Regional or Tiered Network Plans and Service Areas

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CHANGES TO MASSACHUSETTS SURPLUS LINES PREMIUM FEE REPORTING
Attention Surplus Lines Brokers: Recent revisions to M.G.L. c. 175, section 168 relative to the collection of Surplus Lines Taxes have necessitated changes to the Return of Business Reporting process. The changes are shown HERE
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