General Laws of Massachusetts - Chapter 175 Insurance - Section 94E Foreign exchange; license to transact business; application and declaration; requirements

Section 94E. Foreign exchanges may apply for a license to transact business in the commonwealth in the manner set forth in section ninety-four D, with the following exceptions and additions:—

(a) A declaration setting forth that it has funds necessary to meet the financial requirements of a foreign mutual company transacting the same classes of business as provided in subdivision numbered (3) of clause Second of section one hundred and fifty-one, section one hundred and fifty-two and section fifty-four B, and, in the case of an exchange writing non-assessable policies, that it has complied with the financial requirements of section one hundred and fifty-two A.

(b) Instead of that portion of the declaration under section ninety-four D which is required by clause (g) thereof, there shall be filed a declaration setting forth that there is in the possession of the attorney in fact, or trustees duly authorized for that purpose in accordance with the laws of the state where the exchange is located, and available for the payment of losses, funds in the amount required by section ninety-four H, either in cash or invested as required by the laws of the state where the exchange is located.

(c) That, except as to the kinds of insurance hereinafter specifically mentioned, instead of that portion of the declaration under said section ninety-four D which is required by clause (h) thereof, the attorney in fact shall file a statement that the exchange has at least one hundred subscribers with insurance in force aggregating not less than two and one half million dollars; provided, that, in the case of employers’ liability or workers’ compensation insurance, the statement shall set forth that the exchange has at least one hundred subscribers with insurance in force covering a total annual pay roll of not less than two and one half million dollars; and provided, further, that, in the case of automobile insurance, the statement shall set forth that there is in force insurance covering at least one thousand motor vehicles, the premiums on which shall amount to not less than one hundred thousand dollars.

(d) The attorney in fact shall file a financial statement under oath in form prescribed by section twenty-five.

(e) The attorney in fact shall file a certificate from the proper official of the state where the exchange is located, showing that all provisions of law applicable thereto have been complied with and that authority has been given to transact the classes of business which are sought to be transacted in the commonwealth.

(f) The attorney in fact shall file an agreement that no class of business shall be transacted in the commonwealth at such exchange which cannot be transacted by a domestic exchange.

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Last modified: September 11, 2015