Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Section 5 of chapter 175D of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out, in line 8, the word "is" and inserting in place thereof the following words:- , unless it is a claim for compensation or other benefits which arises out of and is within the coverage of a workers' compensation policy, is.
SECTION 2. Section 9 of said chapter 175D, as so appearing, is hereby amended by striking out, in lines 10 and 11, the words "from the fund of the location of the property" and inserting in place thereof the following words:- such person shall seek recovery first from the fund of the location of the property, but if it is a claim for compensation or other benefits under a workers' compensation policy, such person shall seek recovery first from the fund of the jurisdiction of the claimant's contract of hire.
SECTION 3. This act shall apply to all claims for compensation or other benefits which arise out of and are within the coverage of a workers' compensation policy, which have been filed with the Massachusetts Insurers Insolvency Fund after January first, nineteen hundred and ninety-one.
SECTION 4. Chapter 152 of the General Laws is hereby amended by striking out paragraph (2)(b) of section 25A, as so appearing, and inserting in place thereof the following paragraph:-
By furnishing annually a bond running to the commonwealth, with some surety company authorized to transact business in the commonwealth as surety, in such form as may be approved by the department and in such amount not less than twenty thousand dollars as may be required by the department, said bond, however, to be upon the condition that if the license of the principal shall be revoked or if the principal shall cease to transact business in the commonwealth or if the department shall refuse to renew the license or if the principal shall insure with an insurer, the principal shall upon demand deposit with the state treasurer an amount of securities equal to the penal sum of the bond or a single premium non-cancellable policy issued by some insurance company authorized to transact the business of workmen's compensation insurance in this commonwealth, insuring him against any liability that may have arisen under this chapter or a bond executed as surety by some company authorized to transact the business aforesaid in this commonwealth, in an amount and form approved by the department, guaranteeing the payment of any liability on his part that may have arisen under this chapter. The department shall, at least semiannually, determine the liabilities of a self-insurer both incurred or to be incurred because of personal injuries to employees under this chapter. The department may at any time require an additional bond, similarly conditioned, or further security or permit a decrease in the amount of said bond provided the amount of the bond or the bonds in no case shall be less than twenty thousand dollars. The liability of the surety shall not exceed in the aggregate the penal sum or sums stated in any such annual bond or bonds or in any endorsements giving effect to any such increase or reduction. The department may permit a substitution of a new bond or bonds for the bond or bonds which have been furnished and shall return the old bond or bonds to the self-insurer as soon as a new annual bond has been obtained.