Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Section 8 of chapter 178 of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by adding the following sentence:- Expenses of the insurance department shall be subject to the review and approval of the state actuary.
SECTION 2. Section 9 of said chapter 178, as so appearing, is hereby amended by adding the following paragraph:-
Notwithstanding the above limitations, all or any portion of the funds of the insurance department shall, at the discretion of the trustees of the General Insurance Guaranty Fund, established pursuant to the provisions of section nine of chapter twenty-six, be paid to the Savings Bank Life Insurance Council, established pursuant to the provisions of section thirty-two, for the purpose of making pooled investments for the benefit of such departments and in furtherance thereof, said council shall enter into and perform such arrangements relative to the custody and servicing of such investments as the said trustees deem necessary and appropriate. Such funds paid to said Savings Bank Life Insurance Council may be invested subject to the same powers and limitations applicable to investments of domestic life insurance companies under the provisions of chapter one hundred and seventy-five.
SECTION 3. Section 10 of said chapter 178, as so appearing, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- The aggregate amount of savings bank life insurance which may be issued or in force at any time on any one life under life insurance policies issued by all savings and insurance banks shall not exceed two hundred and fifty thousand dollars, exclusive of group insurance, payor insurance, dividends and profits.
SECTION 4. Said chapter 178 is hereby further amended by inserting after section 10 the following section:-
Section 10A. Notwithstanding any other provision of law to the contrary, all employees of savings and insurance banks involved in the sale of insurance policies and annuity contracts issued by such banks shall be required to be licensed as savings bank life insurance agents subject to the provisions of sections one hundred and sixty-three and one hundred and sixty-three A of chapter one hundred and seventy-five.
SECTION 5. Said chapter 178 is hereby further amended by striking out section 12, as appearing in the 1984 Official Edition, and inserting in place thereof the following section:-
Section 12. No policy or annuity contract shall be issued except upon the life or for the benefit of a resident of the commonwealth, or of a person regularly employed therein, or of a current policyholder of a policy issued by a savings and insurance bank. If the holder of any policy or annuity issued by such a bank becomes a resident of another state or country, it shall be necessary, unless the bank otherwise provides, for such a policyholder or such an annuitant, or his duly authorized representative, or the beneficiary entitled to a claim for loss under such a policy, to make or receive payments at the bank, or by correspondence, without notice from the bank. Should a lapse occur by reason of the failure of any such person to do so seasonably, the liability of the bank, in case of a policy of insurance, shall be only for the amount of its previously acquired paid-up insurance value, or, on demand, for the stipulated cash surrender value thereof. Group policies may be issued upon the lives of depositors of one or more savings and insurance banks and their agencies provided that such depositors are residents of the commonwealth.
SECTION 6. Said chapter 178 is hereby further amended by adding the following two sections:-
Section 34. Any savings and insurance bank which converts or has converted to a federal savings bank charter and has its main office located in the commonwealth may continue to operate such insurance department in accordance with the provisions of this chapter.
Section 35. Any department of a savings and insurance bank operating under the authority of this chapter shall be subject to the provisions of chapter ninety-three A and chapter one hundred and seventy-six D of the General Laws.
SECTION 7. All employees of savings and insurance banks required to be licensed in accordance with the provisions of section ten A of chapter one hundred and seventy-eight of the General Laws, inserted by section four of this act, shall be licensed within one year of the effective date of this act; provided, however, that during said one year period, the limitations on policy and annuity amounts prescribed in section ten of said chapter one hundred and seventy-eight and in effect immediately prior to the effective date of this act shall be applicable to any policies or annuities sold by any such employee not so licensed.