Massachusetts Insurance Cancellation Law and Policy Cancellation

Massachusetts has a law that protects consumers from unfair insurance cancellations. This law requires insurance companies to provide clear reasons for cancellation and a 10-day notice period.

You can't cancel your insurance policy without a valid reason, such as non-payment of premiums or material misrepresentation. Insurance companies must also follow a specific procedure for cancellation.

To cancel your policy, you'll need to give your insurance company written notice, which can be done by mail or email. This notice must include your policy number and the reason for cancellation.

If you're considering cancelling your policy, review your contract to understand the terms and conditions.

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Massachusetts has specific laws governing the cancellation of workers' compensation policies. Employers in Massachusetts are required to carry workers' compensation coverage to provide benefits for employees who sustain injuries on the job.

Insurers must provide adequate notice to employers before canceling a policy, and failure to do so can result in the cancellation being deemed ineffective. This was the case in a recent Massachusetts court decision, where the insurer was held liable for benefits paid to an employee after the policy was canceled without proper notice.

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In Massachusetts, the notice of cancellation must be sent to the employer's last known address, and the insurer must use a method that creates a rebuttable presumption of receipt, such as certified mail. However, a court decision reversed a longstanding rule that required notice by certified mail, return receipt requested, for assigned risk policy cancellations, allowing insurers to rely on a certificate of mailing evidencing the mailing of the cancellation notice by first-class mail.

The court emphasized that the purpose of the statute is to ensure that the employer is informed of the impending policy cancellation, and compliance with the statute is essential in a workers' compensation policy to protect all parties involved.

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A company issuing a policy of insurance that is subject to cancellation by the company must effect cancellation by serving the notice thereof provided by the policy and paying or tendering the full return premium due thereunder in accordance with its terms without any deductions.

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The notice and return premium, if any, must be delivered in hand to the named insured, or left at their last address as shown by the company's records, or forwarded to that address by first-class mail.

A check of the company or its duly authorized agent is deemed a sufficient tender.

The affidavit of any officer, agent, or employee of the company, duly authorized for that purpose, that the notice has been served and the return premium, if any, has been paid or tendered, is prima facie evidence that cancellation has been duly effected.

If a policy is made payable to a mortgagee or any person other than the insured, notice must be given as above provided to the payee as well as to the insured.

Policies subject to cancellation by the insured upon giving notice to the company may be cancelled by serving such notice in the manner herein provided upon the company or upon its agent who issued the policy.

In Massachusetts, the law governing notice required to cancel a workers' compensation policy is governed by statutory law, which expressly authorizes notice by first-class mail.

The statute does not require an insurer to obtain proof that the insured received the notice in order for the cancellation to be effective.

However, for assigned risk policy cancellations, the insurer must show actual receipt of the notice, whereas for voluntary cancellations, first-class mail notice is sufficient.

In one case, the Department's judge found that an insurer's failure to produce certified proof of mailing to establish delivery and receipt of the notice of cancellation by the employer invalidated the cancellation.

The Massachusetts Court recently reversed a longstanding rule on notice to assigned risk insureds. This change affects how insurance companies cancel policies for non-payment of premiums.

In the past, a "mailbox" rule was in place, which stated that delivering a document or notice as first-class mail to the United States Post Office established a rebuttable presumption that the addressee had received the notice. This rule was in place when the Legislature enacted § 65B in 1991.

However, the Court pointed out that the Legislature did not require any different method of notice for assigned risk cancellations. The Court analyzed three cases cited by Great Divide and concluded that none of them stated that a requirement for notice by certified mail, return receipt requested, was necessary for assigned risk policy cancellations.

The Appeals Court concluded that the decision by the administrative judge and the Reviewing Board were incorrect in determining that ACE's notice sent by first-class mail was ineffective to cancel an assigned risk policy. Insurers can now rely on a certificate of mailing evidencing the mailing of the cancellation notice by first-class mail to the insured's address of record, even for assigned risk policies.

The Court remanded the case to the Department for further proceedings consistent with its decision. The judges reasoned that since the "mailbox" rule creates a rebuttable presumption, Great Divide should have the opportunity on remand to present any evidence it may have to establish that Cruz did not receive the notice of cancellation.

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In Massachusetts, employers are required to carry workers' compensation coverage to provide benefits for employees who sustain injuries on the job.

The court has ruled that a workers' compensation policy cannot be canceled without adequate notice, as seen in a recent case where an employer's policy was canceled without notice.

Employers must comply with the terms of their workers' compensation policies, and failure to do so may result in the policy being canceled.

If an employer's policy is canceled without notice, the employee may still be able to recover benefits from the Workers' Compensation Trust Fund.

The court has also emphasized that the purpose of the statute requiring notice is to ensure that the insured is informed of the impending policy cancellation.

The insurer must provide notice to the employer's last address, which in this case was listed as two addresses: Drake Road and Electric Avenue.

The court determined that both addresses were effectively "last addresses" under the statute, and the insurer should have sent notice to both addresses.

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The insurer's argument that it had sent notice to the address in its records was not sufficient, as the policy documents were ambiguous regarding the purpose of the two addresses listed.

The court upheld the board's decision, holding the insurer liable for any benefits paid to the employee.

The Appeals Court has also weighed in on the issue of notice for assigned risk policy cancellations, finding that the Department's Reviewing Board's interpretation of the statute was incorrect.

The Appeals Court concluded that insurers can rely on a certificate of mailing evidencing the mailing of the cancellation notice by first-class mail to the insured's address of record, even for assigned risk policies.

The court remanded the case to the Department for further proceedings consistent with its decision, giving the insurer the opportunity to present evidence that the employee did not receive the notice of cancellation.

The "mailbox" rule, which establishes a rebuttable presumption that the addressee received the notice, was found to be a valid method for giving notice of assigned risk policy cancellations.

The court noted that the Legislature did not explicitly require notice by certified mail, return receipt requested, for assigned risk policy cancellations when it enacted the statute in 1991.

In Massachusetts, the longstanding "mailbox" rule established a rebuttable presumption that notice was received when sent by first-class mail. This rule was in place when § 65B became law in 1991.

The Legislature did not explicitly require notice by certified mail, return receipt requested, for assigned risk policy cancellations, suggesting that first-class mail is sufficient. In fact, if the Legislature had intended otherwise, it would have done so explicitly.

The Appeals Court concluded that insurers can rely on a certificate of mailing evidencing the mailing of the cancellation notice by first-class mail to the insured's address of record, even for assigned risk policies.

In Massachusetts, the law requires insurers to provide adequate notice of policy cancellation to the insured.

A company issuing a policy of insurance can cancel it by serving the notice of cancellation and paying or tendering the full return premium due, as stated in the policy.

The notice and return premium must be delivered in hand to the named insured, or left at their last address as shown by the company's records.

If the company's records contain no such address, the notice and return premium must be left at the insured's last business, residence, or other address known to the company.

A notice left or forwarded in this manner is deemed a sufficient notice.

However, a written notice of cancellation is not deemed effective unless the company obtains a certificate of mailing receipt from the United States Postal Service showing the name and address of the insured stated in the policy.

A check from the company or its authorized agent is considered a sufficient tender.

The affidavit of an officer, agent, or employee of the company, authorized for that purpose, is prima facie evidence that cancellation has been duly effected.

In cases where a policy is made payable to a mortgagee or other party, notice must be given to both the payee and the insured.

Policies can also be canceled by mutual consent of the parties, without the need for notice or return premium.

However, employers in Massachusetts are required to carry workers' compensation coverage to provide benefits for injured employees.

If an employer fails to comply with policy terms, the policy may be canceled, but only with adequate notice.

In a recent case, an insurer attempted to cancel a voluntary policy due to nonpayment of premium, but the employer never received notice.

The employee subsequently suffered an injury and sought benefits from the Workers' Compensation Trust Fund.

The Trust Fund later sought to add the employer to the proceedings, resulting in an evidentiary hearing to determine the cancellation's validity.

The administrative judge concluded that the attempted cancellation was ineffective, holding the insurer liable for any benefits paid to the employee.

The Massachusetts Court has discussed the required notice for canceling a workers' compensation policy, and it's essential to understand the rules to avoid potential liability.

The court has established that notices regarding insurance cancellation are governed by statutory law, which expressly authorizes notice by first-class mail. This means that insurers can rely on a certificate of mailing evidencing the mailing of the cancellation notice by first-class mail to the insured's address of record.

In one case, the court ruled that the employer's insurer effectively canceled the policy, and therefore vacated the administrative judge's ruling and remanded for further proceedings. The court explained that the statute did not require that an insurer obtain proof that the insured received the notice in order for the cancellation to be effective.

The court also rejected the assertion that because the law provides an insured employer the right to appeal within ten days of receiving the notice, notices of cancellation must include a proof of receipt to be effective. This is a crucial point, as it means that insurers don't need to obtain proof of receipt from the insured.

However, in another case, the court determined that the insurer's notice of cancellation was ineffective because it was sent to an address that was not the insured's "last address" as shown by the company's records. The court emphasized that the statute's purpose is to ensure that the insured is informed of the impending policy cancellation, and compliance with the statute is essential in a workers' compensation policy to protect all parties involved.

The court also noted that the Department's Reviewing Board had a rationale for restricting the application of the general provisions of § 187C to assigned risk policies. This rationale was that § 65B afforded a right to assigned risk insureds that the law did not afford to voluntary insureds in similar circumstances.

Accidents can happen on the job, and workers' compensation benefits can help employees recover from injuries.

In Massachusetts, employers are generally not responsible for paying workers' compensation benefits, but rather purchase insurance to cover these costs.

The accident on September 1, 2016, involving Cruz's employees, highlights the importance of insurance coverage.

Cruz's workers' compensation policy was canceled by ACE on May 8, 2016, but the cancellation was disputed.

The dispute centered on whether ACE had properly sent the notice of cancellation to Cruz, and whether the cancellation was valid.

The Department of Industrial Accidents held that for assigned risk policy cancellations, the insurer must show actual receipt of the notice.

This means that the insurer must provide certified proof of mailing and receipt of the notice to establish a valid cancellation.

In the case of the employer's insurer, the court ruled that the insurer effectively canceled the policy, and therefore vacated the administrative judge's ruling.

The court explained that notices regarding insurance cancellation are governed by statutory law, which expressly authorized notice by first class mail.

The statute does not require that an insurer obtain proof that the insured received the notice in order for the cancellation to be effective.

This is an important distinction, as it highlights the importance of following the proper procedures for canceling a workers' compensation policy.