Bill > S506

This bill aims to ensure greater fairness in insurance policies by voiding and making unenforceable any provision in life, health, annuity, accident, long-term care, or disability insurance policies that grants an insurer or its agent discretionary authority to determine eligibility for benefits, interpret policy terms, or set standards of review that conflict with Massachusetts law. "Discretionary authority" is defined as a policy provision that allows an insurer to make decisions about benefits or interpret policy language in a way that could lead to a more lenient standard of review by a court. The bill clarifies that insurers can still explain their routine operations and decision-making processes, as long as these explanations do not lead to a deferential court review. Furthermore, the Commissioner of Insurance will not approve policies that contain such discretionary authority, inconsistent standards of review, misleading clauses, or fail to comply with Massachusetts law. The bill also includes a severability clause, meaning that if any part of the law is found to be invalid, the rest will still apply.