Current through Register 1527, August 2, 2024
Section 56.04 - Procedure for Approval of Endorsement and Plans(1)Method of Filing Notice of Intent. An insurer or rating organization seeking approval of a participating repair shop endorsement plan shall file the proposed plan with the Commissioner through the Division's electronic filing system. Any form intended to be used in connection with a proposed plan and which is to be delivered to consumers shall be included in the filing. A hard copy shall be made available upon request.(2)Approval or Disapproval of Plan. The Commissioner shall approve or disapprove the plan in writing and if the plan is disapproved or modified, shall state the reasons for the decision. Approval of a plan may be conditioned upon its modification, including a change in its effective date. The Commissioner may, prior to approving or disapproving a plan, request the party filing it to supplement or modify it.(3)Effective Date of Plan. The benefits of an approved plan shall be made available to all insureds purchasing or renewing policies containing a participating repair shop endorsement, except for those in areas for which a waiver has been obtained under 211 CMR 56.05(12), on or after the effective date of the plan, unless and until the approval of the plan is revoked or the plan is otherwise terminated in accordance with 211 CMR 56.04(4).(4)Revocation of Approval. At any time after approval of a plan, the Commissioner may, after due investigation, commence proceedings to revoke or suspend such approval if he or she determines the insurer is not complying with the terms of the plan, that the plan does not carry out the intent of 211 CMR 56.00 or that the plan is otherwise in violation of existing law. He or she shall commence such proceedings by issuing an order to show cause why the approval of such plan should not be revoked or suspended, which shall briefly set forth the asserted grounds for revocation or suspension. The party which filed the plan, any insurer which has filed a notice that it intends to adopt or has adopted an industry plan, and any interested person may appear at the hearing. The Commissioner may schedule the revocation of more than one plan to be considered at any given hearing. After such hearing, the Commissioner shall issue a written decision, stating reasons for any determination to revoke or suspend approval of the plan. Non-revocation may be conditioned upon modification of the plan or other means of compliance with 211 CMR 56.00. Unless the Commissioner for good cause orders otherwise, the institution of revocation proceedings shall not act to enjoin or suspend the operation of the plan as originally approved. The Commissioner may, instead of or in addition to revocation or suspension, impose fines or other appropriate sanctions under M.G.L. c. 175 and M.G.L. c. 176D for any violations of law or 211 CMR 56.00.Amended by Mass Register Issue 1342, eff. 6/30/2017.Amended by Mass Register Issue 1346, eff. 6/30/2017.