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General Laws

Section 6. (a) 1. No insurer or rating organization shall monopolize or attempt to monopolize, or combine or conspire with any other person or persons to monopolize, in any territory, the business of insurance or any kind, subdivision or class thereof.

2. No insurer or rating organization shall agree with any other insurer or rating organization to charge or adhere to any rate, although insurers and rating organizations may continue to exchange statistical information and provided further a rating organization may establish advisory manuals of classifications, rules and rates, rating plans or modifications of any of the foregoing in any manner not prohibited by the commissioner.

3. No insurer or rating organization shall make any agreement with any other insurer, rating organization or other person to restrain trade.

4. No insurer or rating organization shall make any agreement with any other insurer, rating organization or other person the effect of which may be substantially to lessen competition in any territory or in any kind, subdivision or class of insurance.

5. No insurer may acquire or retain any capital stock or assets of, or have any common management with, any other insurer or insurers, if the effect of such acquisition, retention or common management may be substantially to lessen competition in any territory or in any kind, subdivision or class of insurance.

6. No insurer or rating organization shall make any agreement with any other insurer or rating organization to refuse to deal with any person in connection with the sale of insurance.

7. No rating organization or member or subscriber thereof shall interfere with the right of any insurer to make its rates independently of such rating organization or to charge rates different from the rates made by such rating organization.

8. No member of or subscriber to a rating organization shall refuse to do business with, or prohibit or prevent the payment of commission to any licensed agent or broker on the ground that such agent or broker does business with an insurer which makes its rates, or any portion thereof, independently of such rating organizations.

9. Nothing contained in this chapter shall be construed as requiring any insurer to become a member of or a subscriber to any rating organization, or as preventing any insurer, while a member of or subscriber to a rating organization, from making its own rates for any kind, subdivision or class of insurance, for which it does not elect to authorize the rating organization to act on its behalf.

10. Any insurer which is a member of or subscriber to a rating organization may make its own rates for any kind, subdivision or class of insurance. No rating organization shall have authority to act on behalf of any insurer which is a member of or subscriber to such rating organization except as authorized in writing by such members or subscriber, which authority may be supplemented, modified or revoked, in whole or in part, at any time by such member or subscriber at its option.

11. No rating organization shall have or adopt any rule or execute any agreement, or formulate or engage in any program, the effect of which would be to require any member, subscriber or other insurer to utilize some or all of its services, or to adhere to its rates, rating plans, rating systems, underwriting rules, or policy forms, or to prevent any insurer from acting independently.

(b) 1. Any rate made in violation of subdivision (a) of this section shall be disapproved by the commissioner pursuant to the procedures prescribed in section eight, and each violator shall be subject to the penalties provided in section twelve.

2. The commissioner, through the attorney general, and any person injured in his business or property by reason of anything forbidden in subdivision (a) may maintain an action to enjoin any violation of such subdivision.

3. Any person injured in his business or property by reason of anything forbidden in subdivision (a) may maintain an action and shall recover threefold the damages by him sustained.

(c) The provisions of subdivision (a) shall not be construed to prohibit two or more insurers who by virtue of their business associations in the United States represent themselves to be or are customarily known as an “insurance company group”, or similar insurance trade designation, from having the right to exchange statistical information.

(d) The fact that two or more admitted insurers, whether or not members or subscribers of a rating or advisory organization, use, either consistently or intermittently, the manuals of classifications, rules and rates, rating plans, modifications of any of the foregoing or recommendations of such organizations, shall not be sufficient in itself to support a finding that an agreement to adhere exists, and may be used only for the purpose of supplementing or explaining direct evidence of the existence of any such agreement.

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