AN ACT CONVERTING THE LIQUOR LIABILITY JOINT UNDERWRITING ASSOCIATION INTO THE HOSPITALITY MUTUAL INSURANCE COMPANY.
Whereas, The deferred operation of this act would tend to defeat its purpose, which is forthwith to assure the continued availability of liquor liability insurance, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as follows:
SECTION 1. Chapter 175 of the General Laws is hereby amended by inserting after section 113V the following section:-
Section 113W. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:
“Association”, the joint underwriting association established under chapter 223 of the acts of 1985.
“Licensee”, any person, firm, corporation or association holding a license for the sale of alcoholic beverages under chapter 138.
“Liquor liability insurance”, insurance coverage protecting the insured against any claims for losses, damages or other expenses arising from death or injury to any person or damage to property as a result of negligence in the distribution, sale or service of alcohol by any licensee.
(b) The association is hereby converted into a mutual insurance company to be known as the hospitality mutual insurance company, which shall succeed and assume all of the assets and liabilities of the association. All rights, interests and properties of the association shall, without any further act or deed, be the property of the hospitality mutual insurance company, which shall be bound by all obligations and liabilities of the association including, without limitation, the rights and obligations of the association under the policies of insurance which it issued. No contracts, claims, suits or other rights of or against the association shall be affected by this conversion.
(c) The hospitality mutual insurance company may transact any kind of liability insurance other than automobile insurance. The hospitality mutual insurance company may transact other lines of insurance for which it may be licensed, as the commissioner may approve, subject to the restrictions of section 48A. Except as provided in this section or in its articles of organization or by-laws, the hospitality mutual insurance company shall have all powers conferred upon a mutual insurance company incorporated in the commonwealth. Nothing in this section shall diminish the commissioner’s regulatory authority as set forth in this chapter.
(d) The hospitality mutual insurance company shall make available liquor liability insurance coverage to any licensee.
(e) The hospitality mutual insurance company shall be governed by a board of directors which shall, notwithstanding any general or special law to the contrary, be constituted and selected in the manner set forth in the company’s by-laws. Notwithstanding any general or special law to the contrary, the officers of the company may, on behalf of the board, solicit proxies from its members and vote such proxies without limitation on the number of votes so cast.
(f) Notwithstanding any general or special law to the contrary, the hospitality mutual insurance company: (1) shall not be subject to sections 73, 90A, 92, 93A and 93B, insofar as those sections relate to subscriptions for insurance or securing initial applications for insurance; and (2) may issue nonassessable policies.
SECTION 2. Sections 1 to 12, inclusive, of chapter 223 of the acts of 1985 are hereby repealed.
Approved June 20 , 2008