Section 54.04 - Filing Requirements(1)Effect of Filing. An applicant's full compliance with the procedures set forth in 211 CMR 54.00 shall not preclude the Commissioner from initiating a proceeding pursuant to M.G.L. c. 175, § 22H against the applicant if necessary.(2)Timing. An applicant intending to surrender or non-renew any or all of its licenses shall submit all documents required in 211 CMR 54.04(3) no less than seven months before the intended effective date of the withdrawal. The Division shall review and approve or disapprove forms of notices submitted pursuant to 211 CMR 54.04(3)(f) 1. and 5.a. through f. within 30 days of receiving an applicant's complete withdrawal plan.(3)Material to be Submitted. The applicant shall submit to the Commissioner five copies of the following set of documents: (a) An application to surrender or non-renew any of the applicant's licenses, describing and documenting the applicant's financial condition for the last three years, explaining the applicant's reasons for seeking to withdraw from Massachusetts, including accounting, actuarial and other materials relied upon in deciding to seek withdrawal, and indicating the proposed effective date of such withdrawal.(b) For a CAR assigned risk company or servicing carrier, a copy of its petition to withdraw as an assigned risk company or servicing carrier to be submitted to CAR pursuant to CAR Rule 38 or Rule 16, as applicable.(c) A description of all licenses currently held by the applicant, indicating the date on which such licenses were originally issued;(d) An organizational chart and a narrative description of the relationships, if any, among the applicant and its affiliates, indicating at least: 1. the lines of insurance which each entity is licensed to write;2. the management relationships;3. the financial relationships (e.g., reinsurance agreements, pooling arrangements, common investments);4. the marketing relationships;5. the agency relationships; and6. the claims handling relationships.(e) A description, by line of insurance written in Massachusetts, of the lines of insurance written by the applicant, the premium written by the applicant for the last three years; estimated market share, if known; the number of current policyholders; the number of current producers; and the number of Massachusetts employees;(f) A detailed narrative withdrawal plan, with relevant supporting materials, which must include, but is not limited to: 1. copies of the forms of non-renewal notices the applicant intends to send pursuant to M.G.L. c. 175, §§ 113F, 163, 187B, 187C, 187D, 193P, and any other notices of non-renewal or cancellation, the intended date of the notice and a description of the identities of the recipients of each such notice. All such notices shall include the following statement: "[Name of applicant] has submitted a withdrawal plan for approval by the Commissioner of Insurance. Should the withdrawal plan be revised or the effective date changed, you shall be notified."
2. a list of all of the applicant's producers, including producers placing business with the applicant through an assigned risk plan, as of the date of application. Include the name and address of each producer, as well as the number of policies and the premium volume handled by each producer, by line;3. a copy of each sample form of contract between the applicant and its producers, including any subsequent modifications to those contracts;4. copies of all correspondence intended to be sent to the applicant's producers and policyholders concerning the applicant's withdrawal;5. copies of all correspondence and notices to be sent to the following entities, as well as a description of all agreements, which need not be in final form, reached with such entities as to the applicant's financial obligations to such entities, as applicable: b. the Massachusetts Life and Health Insurance Guaranty Fund, established by M.G.L. c. 175, § 146B;c. the Massachusetts Medical Malpractice Reinsurance Plan established by St. 1994, c. 330, § 10;d. the Urban Area Insurance Placement Facility (FAIR Plan), established by M.G.L. c. 175C;e. the Massachusetts Insurers Insolvency Fund, established by M.G.L. c. 175D; andf. the assigned risk plan for workers' compensation insurance established by M.G.L. c. 152, § 65A; and6. the address of each of the applicant's offices in Massachusetts, the total number of its Massachusetts employees as of the application date, and in accordance with M.G.L. c. 175, § HOD, a description of the applicant's plan with regard to the termination of its Massachusetts employees. Include a description of the employee benefits to be provided upon termination due to the applicant's withdrawal;(g) A detailed description of the applicant's financial and other obligations to the entities referred to above in 211 CMR 54.04(3)(f)5.a. through f. for the most recently completed fiscal year or other accounting period, an estimate of such obligations for the current year and an estimate of such obligations for one year following the year in which the applicant files its withdrawal plan;(h) A statement, by line of insurance written in Massachusetts, of all the applicant's current incurred liabilities, including those incurred but not reported, as developed and certified by an actuary, all as of a date not earlier than 30 days prior to filing; (i) A description of the manner in which the applicant intends to handle claims arising from policies issued to Massachusetts residents remaining in force after the applicant has otherwise withdrawn from doing business in the Commonwealth. Provide a description of the applicant's staff and adjusters to be used, including their location and the procedures for consumer contact; (j) A list of all the applicant's deposits currently held by the Treasurer of the Commonwealth, if any; (k) Written certification from a duly authorized officer of the applicant, signed under the pains and penalties of perjury, that, for as long as there exist any potential claims arising from any policy written by the applicant and covering a Massachusetts resident: 1. the applicant shall fully honor its obligations arising from any such policy;2. the applicant shall fully service all outstanding policies, bonds and surety lines of credit, which includes processing all usual and customary endorsements requested by insureds during the term of such policies, subject to the applicant's normal underwriting standards;3. in those cases in which policies remaining in force provide for dividends to be paid, the insurer shall not unfairly discriminate against Massachusetts policyholders in its dividend practices;4. the applicant shall continue to submit annual statements to the Division and shall continue to submit information to the entities identified in 211 CMR 54.04(3)(f)5.a. through f. upon request, for as long as the applicant has any earned premium or has any paid or incurred losses. In addition, the applicant shall remain subject to examination by the Division as deemed necessary by the Commissioner and shall continue to operate in accordance with and submit to the Commissioner's jurisdiction under M.G.L. c. 176D;5. the applicant shall not accept surplus lines placements for any type of business encompassed by the withdrawal plan to avoid the regulatory requirements attendant to business operations pursuant to a license, unless specifically permitted by the Commissioner;6. the applicant shall maintain designation of the Commissioner as its agent for service of process.Amended by Mass Register Issue 1320, eff. 8/26/2016.