Bill > H1105

This bill modernizes business-to-business commercial insurance transactions by establishing new rules for specialty commercial lines insurance. The bill defines "specialty commercial lines" as a broad category of 20 specific types of commercial insurance, including areas like aircraft liability, cybersecurity, environmental liability, and directors' and officers' liability. Under the proposed legislation, these specialty commercial lines would be exempt from existing state insurance regulations regarding policy form filing, approval, and rate-setting processes. Insurers would still be required to maintain detailed underwriting and financial records subject to potential commissioner examination. The bill also provides a mechanism for the insurance commissioner to temporarily reinstate filing requirements for a specific specialty commercial line if it is determined that sufficient market competition does not exist. Additionally, the bill modifies the definition of a "large commercial policyholder" to include businesses or entities meeting specific financial and organizational criteria, such as having $25,000 in aggregate insurance premiums, a net worth of $10 million, or more than 25 employees. The overall aim is to reduce regulatory burdens for specialized commercial insurance products while maintaining basic consumer protections and allowing for market oversight.

Business and Industry

https://malegislature.gov/Bills/194/H1105