AN ACT RELATIVE TO THE INSURERS INSOLVENCY FUND.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Chapter 175D of the General Laws is hereby amended by
striking out section 2, as appearing in the 1986 Official Edition, and
inserting in place thereof the following section:-
Section 2. This chapter shall apply to all kinds of direct insurance,
except life, accident and health, title, surety, disability credit,
mortgage guaranty, financial guaranty or other forms of insurance offering
protection against investment risks, insurance of warranties of any type of
service contracts and ocean marine insurance.
SECTION 2. Section 4 of said chapter 175D,
as so appearing, is hereby amended by inserting after the word
"commissioner", in line 5, the words:- ; provided, however, that
at least one member of the board shall be appointed by the commissioner as
a representative of insurance producers.
SECTION 3. Paragraph (1) of section 5 of said chapter 175D,
as so appearing, is hereby amended by striking out
clause (a) and inserting in place thereof the following clause:-
(a) be obligated to the extent of the covered claims against the
insolvent insurer existing prior to the declaration of insolvency and
arising within sixty days after the declaration of insolvency, or before
the policy expiration date if less than sixty days after the declaration,
or before the insured replaces the policy or requests cancellation, if he
does so within sixty days of the declaration, but such obligation shall
include only that amount of each covered claim which is less than three
hundred thousand dollars.