Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 7.00 - Massachusetts Insurance Holding Company System
Section 7.07 - Transactions Subject to Prior Notice - Notice Filing (Form D)

(a) Identify the person providing services and the nature of such services;

(b) Set forth the methods to allocate costs;

(c) Require timely settlement, not less frequently than on a quarterly basis, and compliance with the requirements in the National Association of Insurance Commissioners' Accounting Practices and Procedures Manual;

(d) Prohibit advancement of funds by the insurer to the affiliate except to pay for services defined in the agreement;

(e) State that the insurer will maintain oversight for functions provided to the insurer by the affiliate and that the insurer will monitor services annually for quality assurance;

(f) Define records and data of the insurer to include all records and data developed or maintained under or related to the agreement that are otherwise the property of the insurer, in whatever form maintained including, but not limited to, claims and claim files, policyholder lists, application files, litigation files, premium records, rate books, underwriting manuals, personnel records, financial records or similar records within the possession, custody or control of the affiliate;

(g) Specify that all records and data of the insurer are and remain the property of the insurer, and:

(h) State that all funds and invested assets of the insurer are the exclusive property of the insurer, held for the benefit of the insurer and are subject to the control of the insurer;

(i) Include standards for termination of the agreement with and without cause;

(j) Include provisions for indemnification of the insurer in the event of gross negligence or willful misconduct on the part of the affiliate providing the services and for any actions by the affiliate that violate provisions of the agreement required in 211 CMR 7.07(b)(11), 211 CMR 7.07(b)(12), 211 CMR 7.07(b)(13), 211 CMR 7.07(b)(14) and 211 CMR 7.07(b)(15) of 211 CMR 7.00;

(k) Specify that if the insurer is placed in supervision, seizure, conservatorship or receivership pursuant to M.G.L. c. 175, §§ 180A to 180L1/2:

(l) Specify that the affiliate has no automatic right to terminate the agreement if the insurer is placed into supervision, seizure, conservatorship or receivership pursuant to M.G.L. c. 175, §§ 180A to 180L1/2;

(m) Specify that the affiliate will provide the essential services for a minimum period of time, as specified in the agreement, after termination of the agreement, if the insurer is placed into supervision, seizure, conservatorship or receivership pursuant to M.G.L. c. 175, §§ 180A to 180L1/2, as ordered or directed by the receiver or Commissioner. Performance of the essential services will continue to be provided without regard to pre-receivership unpaid fees, so long as the affiliate continues to receive timely payment for post-receivership services rendered, and unless released by the receiver, Commissioner or supervising court;

(n) Specify that the affiliate will continue to maintain any systems, programs or other infrastructure, notwithstanding supervision, seizure, conservatorship or receivership pursuant to M.G.L. c. 175, §§ 180A to 180L1/2, and will make them available to the receiver or Commissioner as ordered or directed by the receiver or Commissioner for so long as the affiliate continues to receive timely payment for post-receivership services rendered, and unless released by the receiver, Commissioner or supervising court; and

(o) Specify that, in furtherance of the cooperation between the receiver and the affected guaranty association(s) and subject to the receiver's authority over the insurer, if the insurer is placed into supervision, seizure, conservatorship or receivership pursuant to M.G.L. c. 175, §§ 180A to 180L1/2, and portions of the insurer's policies or contracts are eligible for coverage by one or more guaranty associations, the affiliate's commitments under 211 CMR 7.07(b)(11), 211 CMR 7.07(b)(12), 211 CMR 7.07(b)(13) and 211 CMR 7.07(b) (14) of 211 CMR 7.00 will extend to such guaranty association(s).