Unfair Methods of Competition and Unfair and Deceptive Acts and Practices in the Business of Insurance

What this document is

M.G.L. ch. 176D, Unfair Methods of Competition and Unfair and Deceptive Acts and Practices in the Business of Insurance (complete chapter) is a state statute published by Massachusetts General Court. It is one of the Massachusetts documents that insurance license exam questions are written from, including massachusetts life & health, massachusetts property & casualty, massachusetts personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• M.G.L. c. 176D, § 3(6) (Stock Operations and Advisory Board Contracts)

  “Stock operations and advisory board contracts: issuing or delivering or permitting agents, officers or employees to issue or deliver, agency company stock or other capital stock, or benefit certificates or shares in any common-law corporation, securities or any special or advisory board contracts...”

• M.G.L. c. 176D, § 3(10) (Agent, Broker and Adjuster Grievance Retention)

  “Agents, brokers and adjusters shall maintain any written communications received by them which express a grievance for a period of two years from receipt, with a record of their disposition, which shall be available for examination by the commissioner at any time.”

• M.G.L. c. 176D, § 3(9) (Unfair Claim Settlement Practices)

  “(9) Unfair claim settlement practices: An unfair claim settlement practice shall consist of any of the following acts or omissions: (a) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue; (b) Failing to acknowledge and act reasonably promptly upon...”

• M.G.L. c. 176D, § 3(10) (Failure to Maintain Complaint Handling Procedures)

  “failure of any person to maintain a complete record of all of the complaints which it has received since the date of its last examination, which record shall indicate in such form and detail as the commissioner may from time to time prescribe, the total number of complaints, their classification by...”

• M.G.L. c. 176D, § 3(10) (Definition of Complaint)

  “For purposes of this subsection, ''complaint'' shall mean any written communication primarily expressing a grievance.”

• M.G.L. c. 176D, § 3(1) (Misrepresentations and False Advertising of Insurance Policies)

  “Misrepresentations and false advertising of insurance policies: making, issuing, circulating, or causing to be made, issued or circulated, any estimate, illustration, circular or statement which: - (a) Misrepresents the benefits, advantages, conditions, or terms of any insurance policy; (b)...”

• M.G.L. c. 176D, § 3(5)(b) (False Statements and Entries)

  “knowingly making any false entry of a material fact in any book, report or statement of any person or knowingly omitting to make a true entry of any material fact pertaining to the business of such person in any book, report or statement of such person.”

• M.G.L. c. 176D, § 3(2) (False Information and Advertising Generally)

  “False information and advertising generally: making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in newspaper, magazine or other publication, or in the form of...”

• M.G.L. c. 176D, § 3(11) (Misrepresentation in Insurance Applications)

  “(11) Misrepresentation in insurance applications: making false or fraudulent statements or representations on or relative to an application for an insurance policy, for the purpose of obtaining a fee, commission, money, or other benefit from any insurers, agent, broker, or individual.”

• M.G.L. c. 176D, § 3(8) (Practices Not Within the Definition of Discrimination or Rebates)

  “readjustment of the rate of premium for a group insurance policy based on the loss or expense experienced thereunder, at the end of the first or any subsequent policy year of insurance thereunder, which may be made retroactive only for such policy year.”

• M.G.L. c. 176D, § 4(a) (Condition Precedent to Lending or Extension of Credit)

  “No person may: (a) require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation the creditor is to acquire or finance, negotiate any policy or contract of insurance through a...”

• M.G.L. c. 176D, § 3(8) (Rebates)

  “giving, or selling, or purchasing or offering to give, sell, or purchase as inducement to such insurance contract, or annuity or in connection therewith, any stocks, bonds, or other securities of any insurance company or other corporation, association, or partnership, or any dividends or profits...”

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More Massachusetts sources

• M.G.L. Chapter 176D - Unfair Methods of Competition and Unfair and Deceptive Acts and Practices in the Business of Insurance (Secs. 1, 2, 3, 3A, 4, 5, 11)State statute
• Massachusetts accident and health / disability policy provisions: M.G.L. c. 175, ss. 108-108N, 110A-110M, 111State statute
• Massachusetts insurance contract and general provisions applicable to all insurers: M.G.L. c. 175, ss. 2, 2A, 2B, 3, 181-194State statute
• Massachusetts group and blanket health insurance: M.G.L. c. 175, ss. 110, 110D, 110G, 110I, 110J, 110K, 110LState statute
• Massachusetts group life insurance: M.G.L. c. 175, ss. 133-138AState statute
• Massachusetts life insurance and annuity contracts, including standard policy provisions: M.G.L. c. 175, ss. 118-132A1/2, 139-146A, 149, 204State statute
• Massachusetts Life and Health Insurance Guaranty Association Law: M.G.L. c. 175, s. 146BState statute
• Massachusetts Medicare supplement and long-term care insurance minimum standards: M.G.L. c. 175 s. 205; c. 176K ss. 1-9; c. 176U ss. 1-9State statute