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Massachusetts Enacts Regulations on Certificates

Jan. 14, 2015 AAIS Advisory notice UPDATED: 5/13/ 2015

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May 13 UPDATE: The Massachusetts Office of Consumer Affairs and Business Regulation recently issued a bulletin with regulations for implementing the law referenced below governing the use of certificates of insurance,

is the latest in a series of states in recent years to enact laws or regulations governing the use of certificates of insurance.

Similar to measures in others states, a recent bill in Massachusetts prohibits anyone from:

  • Issuing a certificate of insurance that contains false or misleading information, or that purports to alter or amend the referenced policy;
  • Representing a certificate as a policy of insurance, or using a certificate to confer any rights not expressly provided under the policy;
  • Using a certificate to warrant that the referenced policy complies with insurance or indemnity provisions of another contract; and
  • Using a certificate to establish rights to notice of cancellation, non-renewal, and material changes in coverage that are not expressly established in the referenced policy.

The bill was signed by  outgoing Gov. Deval Patrick on Jan. 7, and will take effect 90 days after that.

AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information.

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