Amendment #1 to H4203

Floor Amendment

Mr. Speliotis of Danvers moves to amend the bill by striking out all after the enacting clause and inserting in place thereof the following:-

“Chapter 175 of the General Laws is hereby amended by striking out section 21 and inserting in place thereof the following section:-

Section 21.  No company other than a life company or a financial guaranty insurance company shall insure in a single risk an amount larger than 10 per cent of its surplus to policyholders, unless it has reinsured, as provided in section 20, the excess over said limit to take effect simultaneously with the original contract. A financial guaranty insurance company shall be subject to the laws of the state in which it is domiciled for purposes of single risk limitations. A company violating this section shall be punished by a fine of $5,000 for each day during which such violation continues.             

For the purposes of this section, “financial guaranty insurance company”, shall mean an insurance company that is licensed to transact insurance in the commonwealth, and that primarily issues insurance policies, surety bonds, indemnity contracts or any other similar guarantees under which loss is payable, upon proof of occurrence of a financial loss, to an insured.”.