Section 18: Insolvency fund; impaired or insolvent licensees; defense or payment of potential covered claims; limits
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/ma/part-i/title-ii/chapter-21c/18A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 18.
(a)If a licensee is an impaired licensee, the insolvency fund may, in its discretion and subject to any conditions imposed by the insolvency fund, that do not impair the contractual obligations of the impaired licensee and that are approved by the commissioner:
(1)defend, guarantee, assume insure or reinsure, or cause to be defended, guaranteed, assumed, or insured, any or all of the potential covered claims against the impaired licensee; or
(2)provide such monies, pledges, notes, guarantees, or other means as are proper to effectuate clause
(1)and assure defense or payment of the potential covered claim against the impaired licensee pending action under said clause (1).
(b)If a member licensee is an insolvent licensee, the insolvency fund may, in its discretion, either
(1)defend, guarantee, assume, insure or reinsure, or cause to be defended, guaranteed, assumed or reinsured, the potential covered claims against the insolvent licensee; or
(2)assure payment of the potential covered claims against the insolvent licensee; or
(3)provide such monies, pledges, notes, guarantees, or other means as are reasonably necessary to discharge such duties.
(c)The insolvency fund shall pay, pursuant to the procedures set forth in section nineteen, and subject to the limits described herein, so much of any covered claim against an insolvent licensee as exceeds the total of
(1)the amount of liability insurance available to satisfy the judgment; and
(2)the value of the assets of the insolvent licensee reasonably available to satisfy the judgment; and
(3)the value of the assets of any other party liable jointly for all or any part of the said judgment to the extent that those assets are reasonably available to satisfy the judgment.
In no event shall the insolvency fund pay any part of an unsatisfied judgment arising out of one sudden accidental occurrence, to the extent that the judgment exceeds three million dollars, inclusive of interest and costs, nor shall the insolvency fund pay any amount for judgments against a single insolvent licensee for sudden accidental occurrences to the extent that the total of all said judgments exceed six million dollars, inclusive of interest and costs.
In no event shall the insolvency fund pay any part of an unsatisfied judgment arising out of one non-sudden accidental occurrence, to the extent that the judgment exceeds five million dollars, inclusive of interest and costs, nor shall the insolvency fund pay any amount for judgments against a single insolvent licensee for non-sudden accidental occurrences to the extent that the total of all said judgments exceed ten million dollars, inclusive of interest and costs.