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Bill

H 4772

An Act to modernize the Massachusetts insurer’s insolvency fund

193rd Legislature (2023-2024) Introduced by Dan Cahill and 1 co-sponsor

Massachusetts updates its insurance insolvency protection fund to modernize policyholder protections and insurer contribution mechanisms for current market conditions.

Laid before the Governor
0
WeVote Research Nonpartisan
Bill Summary · H 4772

Legislative bill overview

H 4772 modernizes Massachusetts's insurer insolvency fund, which protects policyholders when insurance companies fail. The bill updates the fund's operations, assessment mechanisms, and claim procedures to reflect current market conditions and insurance industry practices. It was amended by the Senate Ways and Means Committee before final passage.

Why is this important

The insurer insolvency fund is a critical consumer protection mechanism—when an insurance company becomes insolvent, policyholders risk losing coverage and unpaid claims. Modernizing this fund ensures the state can adequately protect residents' insurance claims and maintains the stability of Massachusetts's insurance market. The updates likely affect how insurance companies contribute to and how the fund operates during insolvencies.

Potential points of contention

  • Cost to insurers: Updated assessment formulas or contribution requirements may increase costs for insurance companies, potentially passed to consumers through higher premiums
  • Coverage limits: Changes to claim payout limits or types of covered policies could affect which policyholders receive full protection during insolvencies
  • Fund adequacy: Questions about whether modernized provisions ensure sufficient reserves for worst-case scenarios involving multiple large insurer failures

Compiled from official sources — confirm details with the bill’s official record.

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