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The 193rd General Court of the Commonwealth of Massachusetts

Section 166B: Revocation of license; disposition of interest as proprietor, employee, etc. of insurance producer; appointment of receiver; injunction

Section 166B. Whenever the commissioner revokes a license in accordance with the provisions of section 162R, he may also order the person whose license has been revoked to dispose of any interest as proprietor, partner, stockholder, officer or employee of any licensed insurance producer. All terms and conditions relating to said disposition of any such interest shall be subject to the approval of the commissioner. No person whose license as an insurance producer has been revoked shall be allowed to thereafter own, manage, direct or be an employee of any insurance producer without the prior approval of the commissioner. The license of any insurance producer employing such a person or permitting such a person to own or manage or serve as a partner, stockholder or officer of his agency or brokerage without the prior approval of the commissioner shall be subject to revocation or suspension.

Whenever the commissioner revokes a license of an insurance producer, or, if he is satisfied that the continued transaction of business by an insurance producer would be hazardous to the public, his customers or creditors, he may apply to the supreme judicial court for an injunction restraining the insurance producer from further proceeding with his business and for the appointment of a receiver. The court may issue a temporary injunction and appoint one or more temporary receivers forthwith, and it may after a hearing issue a permanent injunction and appoint one or more permanent receivers to take possession of the business property and effects of the insurance producer, to settle its affairs and to distribute its assets, subject to such rules and orders as the court may prescribe. The provisions of sections one hundred and seventy-eight to one hundred and eighty, inclusive, shall, so far as applicable, apply to receivers appointed pursuant hereto.