Bill > S719

This bill establishes a comprehensive framework for private flood insurance in Massachusetts, creating a new chapter of state law that provides detailed regulations for insurers offering flood coverage. The legislation allows insurers to set flood insurance rates without prior approval from the division of insurance, but requires them to base rates on actuarial data that are not excessive, discriminatory, or inadequate, and to file rate changes within 30 days. The bill mandates that insurers notify consumers about the National Flood Insurance Program (NFIP) before selling private flood insurance, informing them about potential rate differences and program options. It also establishes specific notification requirements for lending institutions when properties are located in special flood hazard areas, including providing written warnings about flood risks and insurance requirements. The legislation ensures consumer protection by requiring 45-day notice for policy cancellations (except in cases of non-payment or fraud), and allows insurers to certify that their policies meet federal private flood insurance definitions. Additionally, the bill provides that writing private flood insurance does not count toward an insurer's participation in the Massachusetts Property Insurance Underwriting Association, and gives the divisions of insurance and banks authority to create implementing regulations. The law aims to increase flood insurance options for Massachusetts residents while maintaining consumer safeguards and transparency.

Budget and Finance, Business and Industry

https://malegislature.gov/Bills/194/S719