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April 27, 2024 Clear | 42°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 10: Revocation or suspension of certification of fund; removal of trustee

Section 10. The commissioner may, after a hearing in accordance with chapter thirty A, revoke or suspend the certification of any fund, or, in lieu of such suspension or revocation, fine that fund up to ten thousand dollars, for intentionally doing any of the following:

(1) violating any provision of this chapter or any regulations promulgated hereunder;

(2) presenting false or misleading statements on any document which is filed in accordance with this chapter;

(3) holding a claims reserve less than the minimum required to be maintained by section eight;

(4) using improper accounting procedures not in conformity with section seven.

If the certification of a fund is suspended, that fund shall not accept any new participants, but may continue to provide insurance to its present participants. If the certification of a fund is revoked, the fund shall not accept any new participant and such fund shall cease providing any insurance at the end of the policy period during which such revocation occurs or twelve months from the date of such revocation, whichever occurs first. Prior to the total cessation of provision of insurance under this section, such fund shall be treated as if it were a certified fund.

The commissioner may, after a hearing in accordance with chapter thirty A, remove any trustee of a fund for the reasons described in clauses one to four, inclusive, or for any fact which demonstrates that the trustee did not satisfy the standards of performance established pursuant to section two.