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December 21, 2024 Snow | 28°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 47: Purposes for which companies may be incorporated under this chapter

Section 47. Companies may be incorporated under and subject to the provisions of this chapter for the following purposes:—

First, To insure against loss or damage to property by fire, smoke, smudge, lightning and other electrical disturbances, collision, collapse, fall, wind, tornado, tempest, cyclone, earthquake, volcanic eruption, hail, frost, snow, ice, weather or climatic conditions, including excess or deficiency of moisture, flood, rain or drought, rising of the waters of the ocean or its tributaries, bombardment, invasion, foreign enemies, insurrection, riot, sabotage, war, civil war or commotion, military or usurped power, vandalism, malicious mischief, strikes, labor disturbances, looting, explosion fire ensuing, and explosion no fire ensuing except explosion of steam boilers and flywheels; also to insure against loss or damage by insects, disease or other causes, to trees, crops or other products of the soil; and against loss of use or occupancy due to any of said causes.

Second, To insure, (a) vessels, freights, goods, money, effects, and money loaned on bottomry or respondentia, against the perils of the sea and other perils usually insured against by marine insurance; (b) against risks of inland navigation and transportation; (c) in connection with marine or inland navigation or transportation insurance on any property, against any risk or hazard whether to person or to property, including legal liability on account of loss or damage to either, arising out of the construction, repair, operation, maintenance or use of the subject matter of such primary insurance; (d) a person engaged in the business or trade of manufacturing, buying, selling or dealing in precious stones, jewels, jewelry, gold, silver or other precious metals, silverware, musical instruments, furs, fur garments or fine arts, or of cutting or setting precious stones or jewels, whether as principal, agent, broker, factor or otherwise, against any and all risks of loss or damage in respect to said articles wherever the same may be, including deterioration and loss of use, arising out of or in connection with such business or trade, and against legal liability on account of any such loss or damage, including deterioration or loss of use, or a person not so engaged who owns any of the foregoing named articles or wedding presents, against any and all risks of loss or damage in respect to said articles or presents wherever the same may be, including deterioration and loss of use; (e) against loss or damage to, and loss of use of, motor vehicles, airplanes, seaplanes, dirigibles or other aircraft, their fittings and contents, whether such motor vehicles or aircraft are being operated or not, and wherever the same may be, resulting from accident, collision, fire, lightning, any larceny, pilferage, theft, malicious mischief or vandalism, any of the perils usually insured against by marine insurance or risks of inland navigation and transportation, against loss or damage caused by the concealment, removal or unlawful disposition or conversion of such vehicles or aircraft by a conditional vendee or mortgagor or bailee in possession, and against loss or damage sustained by a conditional vendor or mortgagee of such vehicles or aircraft arising from any default in the payment of the vendee's or mortgagor's indebtedness to the insured in case of the termination of the vendee's or mortgagor's interest in such vehicles or aircraft; (f) against loss or damage to any property caused by teams, airplanes, seaplanes, dirigibles or other aircraft, motor vehicles or other vehicles, and against legal liability for loss or damage caused thereby to the property of another, but not including legal liability for bodily injury or death caused thereby.

Third, To insure against loss or damage to, and loss of use of, airplanes, seaplanes, dirigibles or other aircraft, motor vehicles other than motor boats, their fittings and contents, whether such vehicles or aircraft are being operated or not, and wherever the same may be, resulting from accident, collision, fire, lightning, any larceny, pilferage, theft, malicious mischief or vandalism, any of the perils usually insured against by marine insurance or risks of inland navigation and transportation, against loss or damage caused by the concealment, removal or unlawful disposition or conversion of such vehicles or aircraft by a conditional vendee or mortgagor or bailee in possession thereof, and against loss or damage sustained by a conditional vendor or mortgagee of such vehicles or aircraft arising from any default in the payment of the vendee's or mortgagor's indebtedness to the insured in case of the termination of the vendee's or mortgagor's interest in such vehicles or aircraft.

Fourth, (a) To guarantee the fidelity of persons in positions of trust, private or public, (b) to act as surety on official bonds and for the performance of other obligations, (c) to guarantee or insure to the holders thereof the payment of the principal of, or interest on, bonds, notes or other evidences of indebtedness and to insure against loss or damage arising from any default in the payment of such principal or interest, and (d) to insure a bank, banker, investment broker, banking association or corporation against any loss of bills of exchange, notes, drafts, acceptances of drafts, profits, bonds, securities, evidences of indebtedness, deeds, mortgages, warehouse receipts, bills of lading, documents, currency or money, gold, platinum, silver and other precious metals, refined or unrefined, and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, except against the loss thereof during marine transportation or while being transported by a common carrier, and also to insure a bank, banker, investment broker, banking association or corporation against loss resulting from damage, except by fire, to the insured's premises, furnishings, fixtures, equipment, safes and vaults therein caused by burglary, robbery, hold-up, theft or larceny, or attempt thereat. Nothing in this clause shall be deemed to prohibit insurance against loss of property as herein provided from including insurance against loss thereof while in the custody of a carrier for hire for the purpose of transportation by an armored motor vehicle, accompanied by one or more armed guards.

Fifth, To insure against loss or damage to any property of the insured, and against legal liability for loss or damage on account of the bodily injury or death of any person or any damage to property of another, caused by the breakage, explosion or rupture of, or any accidental injury to, steam boilers and pipes and containers connected therewith, any lighting, heating or cooking apparatus or their connections, flywheels, power wheels, and engines or other apparatus for applying or transmitting motive or electrical power, tanks or other receptacles under pressure, or their connections, or machinery of any kind, and against loss of use and occupancy caused thereby; and against loss or damage caused by the interruption by any cause of electric current or of water or gas supply furnished by a public utility company or municipality; and to make inspections of boilers, machinery and apparatus of any kind, whether or not insured.

Sixth, To insure, (a) any person against bodily injury or death by accident, or (b) any person against legal liability for loss or damage on account of the injury or death of any other person or on account of any damage to property of another, except that no company may insure any person against legal liability for causing injury, other than bodily injury, by his deliberate or intentional crime or wrongdoing, nor insure his employer or principal if such acts are committed under the direction of his employer or principal, or (c) against loss or damage to, or loss of use of, motor vehicles except motor boats, airplanes, seaplanes, dirigibles or other aircraft, their fittings and contents, whether such vehicles or aircraft are being operated or not, and wherever the same may be, resulting from collision or accident, except loss or damage by fire or lightning or while being transported in any conveyance by land or water; (d) to make insurance upon the health of individuals or providing for the mental and emotional welfare of individuals and members of his or her family by defraying the costs of legal services; or (e) to insure the payment of workers' compensation benefits under chapter one hundred and fifty-two.

A policy issued to an individual under subdivision (a) or subdivision (d) may also insure such individual in respect to medical, surgical and hospital expenses of members of his or her family, whether or not benefits to the individual himself are provided thereunder.

Seventh, To insure against loss of and damage to glass, including lettering and ornamentation thereon, and against loss or damage caused by the breakage of glass.

Eighth, To insure against loss or damage to any property of the insured, and against legal liability for any loss or damage to the property of another, caused by the breakage of, or leakage of any fluid or substance from, sprinklers, pumps, water pipes, elevator tanks and cylinders, steam pipes and radiators, plumbing and its fixtures, heating, lighting or cooking apparatus or their connections, or conduits or containers of any fluid; or against loss or damage resulting from accidental injury from other causes than fire, explosion, lightning, bombardment or windstorm, to such sprinklers, pumps, water pipes, elevator tanks and cylinders, steam pipes and radiators, plumbing and its fixtures, heating, lighting or cooking apparatus or their connections, or conduits and containers; against loss or damage to any property of the insured, and against legal liability for loss or damage to the property of another, caused by water, hail, rain, sleet or snow seeping or entering through leaks or openings in buildings, or caused by the contents of any tank, or impact of any falling tank, platform or supports erected in or upon any building; and against loss of use and occupancy due to any of said causes.

Ninth, To insure against loss or damage to any property caused by elevators, airplanes, seaplanes, dirigibles or other aircraft, motor or other vehicles, except motor boats, and against loss of use and occupancy caused thereby.

Tenth, To carry on the business commonly known as credit insurance or guaranty, either by agreeing to purchase uncollectible debts, or otherwise to insure against loss or damage from the failure of persons indebted to the insured to meet their liabilities.

Eleventh, To examine titles of real and personal property, furnish information relative thereto, and insure owners and others interested therein against loss by reason of encumbrances, defective title or the insufficiency of any mortgage held or sold by the insurer as security for the amount secured by such mortgage, or against any other loss in connection with any such mortgage or any interest therein, and to buy and sell mortgages of real property and interests therein.

Twelfth, To insure against property loss or damage by burglary, robbery, any larceny or theft, any breaking and entry or entry without breaking of any house, building, ship, vessel or railroad car, or any other criminal act; against loss or damage caused by the concealment, removal or unlawful disposition or conversion of property by a conditional vendee or mortgagor or bailee in possession; against loss or damage caused by forgery; and against any and all kinds of loss or destruction of or damage to moneys, securities, currencies, scrip, coins, bullion, bonds, notes, drafts, acceptances of drafts, bills of exchange, evidences of indebtedness, deeds, mortgages and other valuable papers or documents, except while in the custody or possession of and being transported by a carrier for hire or in the mail.

Thirteenth, To insure against loss or damage from the death from any cause of horses, live stock or domestic animals, and to furnish veterinary service.

Fourteenth, To transact outside of the territorial limits of the United States any and all forms of insurance.

Fifteenth, To reinsure risks of every kind or description undertaken by other companies.

Sixteenth, To transact life insurance and to make contracts for the payment of annuities and pure endowments.

Seventeenth, To insure buildings and building service equipment pertaining thereto and a part thereof, and machinery, tools, and other equipment appurtenant to or used in connection with any trade, business, manufacturing process, governmental operations, or public and private institutions, household furniture and furnishings and other personal property, for the difference between the actual value of the insured property at the time any loss or damage occurs and the cost of repairing, rebuilding or replacing on the premises described in the policy, or some other location within the commonwealth mutually agreed upon between the insurer and the insured, with new materials of like size, kind and quality, such property as has been damaged or destroyed by fire or other peril insured against, if repaired, rebuilt or replaced within the commonwealth within not exceeding two years from date of loss or such further time as may be agreed to between the insurer and the insured; and also, to insure against the cost of demolition or reconstruction, or both, of any portion of the insured premises which has not suffered damage and the additional cost of repair or reconstruction, or both, of portions of the insured premises which have suffered damage, necessary to comply with applicable laws, ordinances or by-laws.

[There is no clause Eighteenth.]

Nineteenth, To provide legal services insurance under the provisions of chapter one hundred and seventy-six H.

Twentieth, To insure debtors, guarantors or purchasers against loss of employment resulting from involuntary unemployment.