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November 21, 2024 Clouds | 45°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 172A: Voluntary association licenses

Section 172A. The licenses described in sections 162M, 162N, one hundred and sixty-eight and one hundred and seventy-two may, upon payment of the fees prescribed by section fourteen, be issued to any voluntary association, as defined in section one of chapter one hundred and eighty-two, which is organized exclusively for the purpose of acting as insurance producer, or public insurance adjuster and which, in case of an association organized to act as an insurance producer, by its written instrument or declaration of trust limits the holding and ownership of shares or certificates of participation therein to resident insurance producers. All the trustees shall be residents of the commonwealth. Such association and the trustees thereof shall be subject to section six of said chapter one hundred and eighty-two. Such licenses, together with the association and the trustees thereof named in the license, shall be subject to the sections of this chapter hereinbefore mentioned, except as otherwise provided herein. Each license shall specify the trustees, not exceeding five, who may act thereunder in the name and on the behalf of the association. Each trustee shall file the statement or application required by law. A duplicate original of the written instrument or declaration of trust creating the association and a certified copy of the by-laws thereof, if any, shall be filed with said statements or applications. The license may be revoked or suspended as to the association or as to any trustee named therein. The trustees shall file with the commissioner within thirty days after the adoption thereof, duplicate originals of all amendments to the written instrument or declaration of trust and certified copies of all amendments to the by-laws, if any. The trustees shall at once notify the commissioner in writing in case of the termination of the association, and upon receipt of such notice the commissioner shall forthwith revoke the license of the association without a hearing. Each trustee specified in the license shall be personally liable to the penalties of the insurance laws for any violation thereof, although the act of violation is done in the name or in the behalf of the association, and shall be personally liable for all of the debts and obligations of the association, notwithstanding any provision in the written instrument or declaration of trust of such association limiting the liability of the trustees thereunder, and such provision, if any, shall be deemed to have been waived by the trustees by their filing the aforesaid statements or applications. The commissioner may at any time require such information as he deems necessary in respect to the association, its trustees, agents or affairs, and may make such examination of its books, records and affairs as he deems necessary and for the aforesaid purposes shall have all the powers conferred by section four. Whoever, being a trustee of an association licensed under this section, fails to file with the commissioner copies of all amendments to the written instrument or declaration of trust, or to the by-laws, if any, or fails to notify the commissioner of the termination of such association, or whoever knowingly or wilfully files with the commissioner false copies of the written instrument or declaration of trust or amendments thereof, or of the by-laws, if any, or amendments thereof, or whoever, being specified in the license of such association as a trustee thereof, acts under said license after the termination of such association, shall be punished by a fine of not less than twenty nor more than five hundred dollars. Sections one hundred and seventy-four A and one hundred and seventy-four B shall apply to licenses issued under this section.