ADMINISTRATION OF THE GOVERNMENT (Chapters 1 through 182)
MASSACHUSETTS INSURERS INSOLVENCY FUND
Section 1. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings:—
(1) “Commissioner”, the commissioner of insurance.
(2) “Covered claim”, an unpaid claim, including one for unearned premiums, which arises out of and is within the coverage of an insurance policy to which this chapter applies issued by an insurer, if such insurer becomes an insolvent insurer and (a) the claimant or insured is a resident of the commonwealth; or (b) the property from which the claim arises is permanently located in the commonwealth.
“Covered claim”, shall not include (1) claims excluded pursuant to section 17 due to the high net worth of an insured, and (2) any amount due a reinsurer, insurer, insurance pool or underwriting association; provided, that a claim for the amount, asserted against a person insured under a policy issued by an insurer which has become an insolvent insurer, which, if it were not a claim by or for the benefit of a reinsurer, insurer, insurance pool or underwriting association, would be a “covered claim” may be filed directly with the receiver of the insolvent insurer, but in no event may the claim be asserted against the insured of the insolvent insurer.
(3) “Fund”, the Massachusetts Insurers Insolvency Fund created under section three.
(4) “Insolvent Insurer”, an insurer authorized to transact insurance in this commonwealth either at the time the policy was issued or when the insured event occurred and determined to be insolvent by a court of competent jurisdiction.
(5) “Insurer”, any person, except as provided in the ninth paragraph of section six of chapter three hundred and sixty-two of the acts of nineteen hundred and seventy-five, who (a) writes any kind of insurance to which this chapter applies, including the exchange of reciprocal or interinsurance contracts, and (b) is licensed to transact insurance in the commonwealth.
(6) “Net direct written premiums”, direct gross premiums written in the commonwealth on insurance policies to which this chapter applies, less return premiums thereon and dividends paid or credited to policy holders on such direct business. Premiums written by any insurer on policies issued to self-insurers, whether or not designated reinsurance contracts, shall be deemed net direct written premiums. For workers’ compensation policies issued with deductibles under paragraph (4) of section 25A of chapter 152, net direct written premiums shall be deemed to be an amount equal to standard premium plus any applicable all risk adjustment program amounts.
(7) “Plan”, the plan of operation established and approved under section six.