Bill Text: MA H892 | 2009-2010 | 186th General Court | Introduced
Bill Title: Preventing fraud in life and accident and health insurance policies issued in the Commonwealth
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-03-22 - Reported favorably by committee and referred to the Joint Committee on Health Care Financing [H892 Detail]
Download: Massachusetts-2009-H892-Introduced.html
The Commonwealth of Massachusetts
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PRESENTED BY:
James H. Fagan
_______________
To the
Honorable Senate and House of Representatives of the Commonwealth of
Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the passage of the accompanying bill:
An Act relative to preventing fraud.
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PETITION OF:
|
Name: |
District/Address: |
|
James H. Fagan |
3rd Bristol |
[SIMILAR MATTER FILED IN PREVIOUS
SESSION
SEE HOUSE, NO. 939 OF 2007-2008.]
The Commonwealth of
Massachusetts
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In the Year Two Thousand and Nine
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An Act relative to preventing fraud.
Be
it enacted by the Senate and House of Representatives in General Court
assembled, and by the authority of the same, as follows:
SECTION 1. Section 186 of
chapter 175 of the General Laws, as appearing in the 2006 Official Edition, is
hereby amended by adding at the end thereof, the following paragraph:-
Notwithstanding the provisions of sections one
hundred and eight and one hundred and thirty two of this chapter, no company
shall be barred by the passage of any period of time from asserting as a
defense to a claim under any insurance policy, or as grounds for rescission,
that the statements contained in the life or accident or sickness insurance
policy application, or any reinstatement application, were fraudulent and made
with actual intent to deceive and gain coverage that the applicant or insured
would not otherwise have qualified for. Said defense to a claim
under this paragraph must be pertinent to said policy; and, provided further,
that inadvertent mistakes made by an insured in the negotiation of a policy of
insurance as set out in this paragraph shall not constitute fraud. Any such action for rescission hereunder must be brought
within three years of the time that the insurer discovered or reasonably should
have discovered the fraud by the applicant.
SECTION 2. This act shall apply to all life and accident and health policies hereafter delivered or issued for delivery in the Commonwealth, any contract provision notwithstanding, and to any policy of life or accident and health insurance that has not become incontestable by its terms prior to the effective date of this act.
