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The 192nd General Court of the Commonwealth of Massachusetts

Section 110C: Health insurance of persons over 65; issuance by two or more companies

Section 110C. 1. Notwithstanding any contrary provision of this chapter or of any other law, two or more insurance companies authorized to do the kind of business described in subdivision (d) of clause Sixth of section forty-seven may join together to offer, sell and issue a policy of group insurance, on which policy each insurance company shall be severally liable for a specified percentage of the risks, insuring residents of this commonwealth who are sixty-five years of age or older and the spouses of such residents against financial loss due to accident or sickness and such insurance companies may also agree with respect to premium rates, policy provisions, commission schedules and other matters within the scope of this section. Such insurance may be offered, issued and administered jointly by two or more such insurance companies in their own names or in the name of a voluntary unincorporated association, other organization or trust formed by such insurance companies solely for the purpose of offering, selling, issuing and administering such insurance. Such policy may be executed on behalf of the insurance companies by a duly authorized person and need not be countersigned by a resident agent.

2. The forms of the policies, applications, certificates or other evidence of insurance coverage, commission schedules and applicable premium rates shall be filed with the commissioner, who may require additional information. A financial summary concerning such insurance shall be furnished annually to the commissioner in such form as he may prescribe. If the commissioner finds that any forms for such insurance are unjust, unfair, inequitable, misleading or deceptive, or that the premium rates charged are excessive, inadequate or unfairly discriminatory or that any activity or practice under this section of such insurance companies or of such association, organization or trust is unfair, unreasonable or contrary to the public policy, he shall, after at least twenty days notice and hearing, disapprove such forms or premium rates or require the discontinuance of such activity or practice. In determining whether such premium rates are excessive, inadequate or unfairly discriminatory, the commissioner shall give due consideration to past and prospective claim experience within and outside this commonwealth and to fluctuations in such claim experience, to a reasonable risk charge, to contribution to surplus and contingency funds, to past and prospective expenses both within and outside this commonwealth, and to all other relevant factors within and outside this commonwealth including any differing operating methods of the insurance companies joining in the issue of the policy. Any person or insurance company aggrieved by any action, order, finding or decision of the commissioner under this section may, within twenty days from the filing of a memorandum thereof in his office, file a petition in the supreme judicial court for the county of Suffolk for a review of such action, order, finding or decision. The action, order, finding or decision of the commissioner shall remain in full force and effect pending the final decision of the court unless the court or a justice thereof after notice to the commissioner shall by a special order otherwise direct. The court shall have jurisdiction in equity to modify, amend, annul, review or affirm such action, order, finding or decision, shall review all questions in accordance with the standards for review provided in paragraph (8) of section fourteen of chapter thirty A and may make any appropriate order or decree.

3. Nothing in sections one hundred and eight and one hundred and ten shall be construed to apply to or affect or prohibit the issuance of any policy of insurance under this section.

4. Such association, organization or trust may incur expenses for advertising, soliciting and administering such insurance, including payment of salary or compensation to persons regularly employed by it. Any agent or broker duly licensed in the commonwealth to transact the kind of insurance described in subdivision (d) of clause Sixth of section forty-seven or in clause Sixteenth of section forty-seven may solicit such insurance for such association, organization or trust without any additional license or authority under this chapter. No commission, compensation or other fee or allowance in connection with such insurance shall be paid to such insurance agent or broker except in accordance with commission schedules filed under subdivision 2 of this section.

5. Any unincorporated association or other organization formed under this section may sue and be sued in its associate name and for such purposes only shall be treated as a domestic corporation. Service of process against such association made upon a managing agent, any member thereof or any agent authorized by appointment to receive service of process, shall have the same force and effect as if such service had been made upon all members of the association.

6. Under any policy issued as herein provided the policyholder, or such person as the policyholder shall designate, shall alone be a member of each domestic mutual insurance company joining in the issue of the policy and shall be entitled to one vote by virtue of such policy at the meetings of each such mutual insurance company. Notice of the annual meetings of each such mutual insurance company may be given by written notice to the policyholder or as otherwise prescribed in this chapter.