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May 22, 2024 Clouds | 63°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 1: Definitions

Section 1. In this chapter unless the context otherwise requires, the following words shall have the following meanings:

1. ''Insurance agent'' and ''insurance broker'', respectively, an insurance agent or insurance broker duly licensed as such under chapter one hundred and seventy-five.

2. ''Person'', an individual, corporation, business trust, estate, trust, partnership or association, two or more persons having a joint or common interest, or any other legal or commercial entity, except an insurance company authorized or approved to do business within the commonwealth.

3. ''Premium finance agency'', a person engaged, in whole or in part, in the business of acquiring premium finance agreements from insurance agents or brokers or other premium finance agencies, and an insurance agent or broker who is licensed as a premium finance agency and who holds premium finance agreements made and delivered by insureds to him or his order and any property and casualty insurance agent or broker, who provides premium financing only to his own customers for purposes of financing the payment of premiums on contracts of insurance, which contracts of insurance are exclusively limited to commercial policies.

4. ''Premium finance agreement'', a promissory note or other written agreement by which an insured promises or agrees to pay to, or to the order of, an insurance agent or broker the amount advanced or to be advanced under the agreement to an authorized insurer or to an insurance agent or broker in payment of premiums on an insurance contract, together with a charge as authorized and limited by law. If the premium finance agreement is payable to, or to the order of, an insurance agent or broker not licensed as a premium finance agency, payments under the agreement must be payable at the office of a premium finance agency.

5. ''Commissioner'', the commissioner of banks.