Massachusetts General Laws
Chapter 26 - Department of Banking and Insurance
Section 8e - Rating Bureau; Investigations; Assessments; Employees; Medical Malpractice Liability Insurance

Section 8E. There shall be in the division of insurance a rating bureau which shall make an investigation and study of all insurance companies authorized to issue motor vehicle liability insurance as described by sections thirty-four A and thirty-four O of chapter ninety, or authorized to issue policies for the purposes set forth in the first clause of section forty-seven of chapter one hundred and seventy-five as set forth in subdivisions (d), (e) and (f) of the second clause of said section forty-seven, as set forth in the third, fourth and fifth clauses of said section forty-seven, as set forth in subdivision (b), (c) and (e) of the sixth clause of said section forty-seven or set forth in the seventh, eighth, ninth, tenth, eleventh, twelfth and seventeenth clauses of said section forty-seven pertaining to such data, statistics, schedules, or other information as it may deem necessary to assist in the determination of adequate, reasonable, just and nondiscriminatory premium charges for such policies, for the purpose of assisting the commissioner of insurance in the annual fixing and establishment or approving of fair and reasonable classifications of risks, and adequate, just and reasonable and nondiscriminatory premium charges for such insurance. Said rating bureau shall annually report the results of its investigation and study, and its recommendations to the commissioner of insurance who shall thereafter fix and establish said classifications and charges, as provided in section one hundred and thirteen B of chapter one hundred and seventy-five and approve or disapprove premium charges in accordance with chapter one hundred and seventy-five A.
The commissioner shall appoint all employees of the bureau. The bureau may expend for expenses and for such legal, investigative, clerical and other assistance and operation of said bureau, such sums as may be appropriated therefor; provided, however that all costs of administration and operation of said board shall be borne by liability insurance companies doing business within the commonwealth. The commissioner shall apportion estimated costs among all such companies and shall assess them for the same on a fair and reasonable basis. Said estimated costs shall be paid to the commissioner within thirty days after the date of the notice from the commissioner of such estimated costs. The commissioner shall subsequently apportion actual costs among all such companies and shall make assessment adjustments for any variation between estimated and actual costs on a fair and reasonable basis. Such estimated and actual costs shall include an amount equal to indirect costs as determined by the commissioner of administration and fringe benefit costs as determined by the commissioner of administration. Accountants, attorneys and actuary-statisticians employed by the board shall have access to all records kept by the registry of motor vehicles and to such records kept by insurance companies as may be pertinent to premium charges. The bureau shall consist of at least the following employees who shall devote their full time to the duties of their office and shall be exempt from the provisions of chapters thirty and thirty-one and shall serve at the pleasure of the commissioner: two certified public accountants, two attorneys and six actuary-statisticians. The actuary-statisticians shall be associates of the casualty actuarial society or the society of actuaries or shall have obtained a doctoral degree in a related discipline.
There shall also be within the rating bureau at least the following persons who shall perform the duties of the rating bureau relating to workers' compensation insurance: an actuary, a rate attorney, a mathematician, a researcher and an accountant. The actuary shall be a member of the Casualty Actuarial Society or shall have attained a doctoral degree in a related discipline. The mathematician shall be engaged in the program of study recommended by said Casualty Actuarial Society or shall have substantial mathematical and statistical training.
Such actuary, rate attorney, mathematician, researcher and accountant shall be appointed by the commissioner and shall be exempt from the provisions of chapter thirty and chapter thirty-one.
The commissioner may make an assessment against any corporation, unincorporated association, partnership, or individual licensed as a rating organization pursuant to section 52C of chapter 152 and against any company authorized to write workers' compensation insurance that is not a member of any rating organization licensed pursuant to said section 52C to pay for the rating bureau's expenses as they relate to workers' compensation. The assessment shall be apportioned on the basis of the direct written premium of each insurance company in the most recent calendar year. Such assessment shall be deposited into the Rating Bureau's Workers' Compensation Trust Fund. All monies deposited into the trust fund shall be expended, without appropriation, exclusively by the rating bureau. Such assessment shall be made at a rate sufficient to produce five hundred thousand dollars in nineteen hundred and ninety-two, and may be increased annually thereafter by a rate not to exceed the most recent annual consumer price index calculated by the Bureau of Labor Statistics of the United States Department of Labor for the northeast region for all urban consumers. In addition to such assessment, the commissioner of insurance shall also collect an amount equal to indirect costs as determined by the commissioner for administration and for the persons within the rating bureau, for the persons within the rating bureau who perform the duties relating to workers' compensation insurance, an amount equal to the cost of fringe benefits as established by the commissioner of administration to be credited to the General Fund. Said amounts shall be expended, without appropriation, for indirect costs and for such persons' fringe benefits. If the commissioner shall fail to expend any money collected under this paragraph in any fiscal year other than monies collected for fringe benefit and indirect costs, such unexpended amount shall be credited against the assessment to be made in the following year and the assessment in the following year shall be reduced accordingly. Funds collected under this section may be used to compensate consultants retained by the rating bureau and to defray its reasonable operating expenses and administrative overhead costs. The assessment, including the collection for indirect costs and fringe benefits, shall be collected by the commissioner of insurance. Any rating organization licensed pursuant to section 52C of chapter 152 and any company authorized to write workers' compensation insurance that is not a member of any rating organization licensed pursuant to said section 52C shall pay the amount assessed within 30 days after the date of the notice of assessment from the commissioner. The assessment shall be apportioned on the basis of the direct written premium of each insurance company in the most recent calendar year. The rating bureau shall regularly perform market conduct examinations as often as the commissioner deems appropriate.
There shall be within the rating bureau at least the following persons who shall perform the duties of the rating bureau relating to medical malpractice liability insurance: an actuary, a rate attorney, and a researcher. The actuary shall be a member of the Casualty Actuarial Society or shall have attained a doctoral degree in a related discipline. Such actuary, rate attorney, and researcher shall be appointed by the commissioner and shall be exempt from the provisions of chapters thirty and thirty-one.
The commissioner is authorized to make an assessment against medical malpractice insurers licensed, admitted, authorized or approved by the commissioner to pay for the rating bureau's expenses as they relate to medical malpractice insurance. Such assessment shall be deposited into the Rating Bureau's Medical Malpractice Insurance Trust Fund. All monies deposited into the trust fund shall be expended, without appropriation, exclusively by the rating bureau. Such assessment shall be made at a rate sufficient to produce three hundred thousand dollars in the first twelve months, and may be increased annually thereafter by a rate not to exceed the most recent annual consumer price index calculated by the Bureau of Labor Statistics of the United States Department of Labor for the northeast region for all urban consumers. In addition to such assessment, the commissioner of insurance shall also collect, for the persons within the rating bureau who perform the duties relating to medical malpractice liability insurance, an amount equal to the cost of fringe benefits as established by the commissioner of administration pursuant to section five D of chapter twenty-nine to be credited to the General Fund. Said amount shall be expended, without appropriation, to pay for such persons' fringe benefits. If the commissioner shall fail to expend any money collected under this paragraph in any fiscal year, such unexpended amount shall be credited against the assessment to be made in the following year and the assessment in the following year shall be reduced accordingly. Funds collected under this section may be used to compensate consultants retained by the rating bureau and to defray its reasonable operating expenses and administrative overhead costs. The assessment, including the collection for fringe benefits, shall be collected by the commissioner of insurance. Any entity assessed shall pay the amount assessed within thirty days after the date of the notice of assessment from the commissioner. The rating bureau shall regularly perform market conduct examinations as often as the commissioner deems appropriate. The assessments authorized under this paragraph shall be allocated on a fair and reasonable basis among all medical malpractice insurers licensed, admitted, authorized or approved by the commissioner. For the purposes of this section, the term medical malpractice insurer shall mean a medical malpractice insurer as defined in section one hundred and ninety-three U of chapter one hundred and seventy-five.

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