Massachusetts has a new law that partially deregulates rates and forms for certain eligible larger commercial risks. HB 1700 permits commercial accounts with more than $30,000 in premium that also meet several other criteria to choose to be exempt from the state’s prior approval of rates law.
Large commercial policyholder are defined as any business or public entity which has aggregate property and casualty insurance premiums of $30,000 (excluding workers’ compensation) and which has certified that it elects to be treated as a large commercial policyholder and understands the limited regulatory oversight that this connotes.
Eligible large commercial policyholders must also certify that they meet two of the following criteria:
• Net worth of $ 10 million; or
• Net revenue or sales of $5 million; or
• More than 25 employees per individual company or more than 50 employees per holding company aggregate; or
•. Non-profit or public entity with an annual budget or assets of $25 million or more; or
• Municipality with a population of 20,000 or more; or
• Retains a risk manager who shall be a full-time employee or a person retained by a large commercial policyholder, either of which must be licensed and must be one of the following: a certified insurance counselor, a chartered property and casualty underwriter, an associate in risk management, a certified risk manager, or a licensed insurance advisor in property and casualty insurance.
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