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

Section 94I: Annual reporting by reciprocal insurance exchange; examination of affairs of exchange by commissioner

Section 94I. A reciprocal insurance exchange shall not be required to make any annual report, except as provided in this section.

Every reciprocal insurance exchange shall file annually, on or before March first, or sixty days from such date authorized by the commissioner, with the commissioner a report of its financial condition, verified by oath of its attorney in fact, or in the instance that said attorney in fact is a corporation than by a duly authorized executive officer. The annual statement shall be prepared in accordance with section 25.

At least once in three years, and at other times when the commissioner determines it to be prudent, said commissioner or his designee shall visit each reciprocal insurance exchange, and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations and whether it has complied with the provisions of this chapter. The commissioner, upon application and in his discretion, may enlarge the aforesaid three year period to five years; provided, however, that said reciprocal insurance exchange is subject to a comprehensive annual audit during such period of a scope satisfactory to the commissioner conducted by independent auditors approved by him. The expenses and charges of the examination shall be paid to the commonwealth by the company or companies examined, and the commissioner or his designee shall issue a certificate demanding payment for the proper charges incurred in all examinations.