Section 54: Domestic mutual companies; kinds of business that may be transacted; power to combine
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/ma/part-i/title-xxii/chapter-175/54·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 54. No domestic mutual company shall transact any other kind of business than is specified in its charter or agreement of association, except that it may in addition transact the kinds of business specified below by reference to the several clauses of section forty-seven, as follows:
(a)The first, if authorized to transact fire insurance; the first and third, the third and eighth, or the first, third and eighth, if authorized to transact any one of said clauses.
(a1/2) The seventeenth, if authorized to transact any one or more of the first, second and eighth clauses, provided that it has net cash assets over all liabilities, computed on the basis fixed by sections ten and eleven, of not less than four hundred thousand dollars and provided further that if a company does not have net cash assets to the said amount, it may transact business under the seventeenth clause, with the approval of the commissioner, if all risks insured by it under said clause are fully reinsured with a company authorized to transact business in the commonwealth whose net cash assets, so computed, together with such assets of the ceding company, aggregate not less than eight hundred thousand dollars.
(b)The second, if authorized to transact the first and it has two million dollars of insurance in force in not less than eight hundred separate risks in the commonwealth.
(c)The sixth, excepting subdivision
(e)thereof, if authorized to transact life insurance, whether or not it has a capital stock, provided it has net cash assets over all liabilities, computed on the basis fixed by sections nine to twelve, inclusive, of not less than one million six hundred thousand dollars.
(d)The eighth, if authorized to transact the first.
(e)Any one or more of the fourth, fifth, sixth, seventh, eighth, ninth, tenth, twelfth and thirteenth clauses, if authorized to transact business under any one of said clauses, provided that before transacting business under any such additional clause, other than the fourth, it shall have net cash assets over all its liabilities, computed on the basis fixed by sections ten to twelve, inclusive, of not less than one hundred thousand dollars for each additional clause, which net cash assets shall be maintained as long as it transacts business under such additional clause; and provided further, that before transacting business under the fourth clause, it shall have a fully paid-up guaranty capital as provided in section ninety B or a guaranty fund as provided in section ninety C, and net cash assets, so computed, exclusive of said capital or fund, of not less than one hundred thousand dollars, and that before transacting business under subdivision
(b)of the sixth clause, it shall have a fully paid-up guaranty capital as provided in section ninety-three in addition to the net cash assets hereinbefore required for transacting business under the sixth clause. Any mutual company transacting business under this clause may accumulate and maintain the net cash assets required hereunder in addition to the amount permitted by section eighty. The provision of section twenty-one that a mutual boiler company may insure in a single risk an amount not exceeding one fourth of its net assets shall not apply to any mutual company transacting business under this clause.
[There is no clause (f).]
(g)Such other form or forms of insurance coverage not included in the provisions of section forty-seven and not contrary to law as the commissioner in his discretion may authorize and license and which shall be transacted only upon such terms and conditions as he may from time to time prescribe and upon payment of the fee prescribed by section fourteen.
Nothing in this section shall permit any domestic mutual company to combine classes of business which may not be combined under section forty-eight A.
A company transacting or seeking to transact business under this section shall be subject to the combined capital and surplus provisions required under section forty-eight.