Section 4.04 - Insurance Requirements for Limited Liability Companies and Limited Liability Partnerships(1) A limited liability company or limited liability partnership which provides or offers to provide Chiropractic Treatment in Massachusetts shall maintain in good standing professional liability insurance which meets the following minimum standards: (a) The insurance shall cover negligence, wrongful acts, and errors and omissions;(b) The insurance shall insure the limited liability company and its members, as required by M.G.L. c. 156C, § 65, or the limited liability partnership and its partners as required by M.G.L. c. 108A, § 45(8)(a);(c) The insurance shall provide, for each registered chiropractor who is a member, partner or employee of the limited liability company or limited liability partnership, coverage in an amount of at least $500,000 for each claim with an aggregate top limit of liability for all claims during any one year of at least $1,000,000; and(d) The insurance required by 233 CMR 4.04(1) may provide that it does not apply to any dishonest, fraudulent, criminal or malicious act or omission of the insured limited liability company or limited liability partnership or any partner, member or employee thereof resulting in:1. Bodily injury to, or sickness, disease or death of, any person; or2. Injury to or destruction of any tangible property, including the loss of use thereof.(e) Such insurance policies may contain reasonable provisions with respect to policy periods, territory, claims, conditions and other usual matters.(2) A limited liability company or limited liability partnership which provides or offers to provide Chiropractic Treatment in Massachusetts is not required to maintain the insurance required by 233 CMR 4.04(1) if:(a) That limited liability company or limited liability partnership maintains a designated and segregated capital fund equal to the amount of insurance required by 233 CMR 4.04(1)(c); and(b) Such funds are specifically designated and segregated for the satisfaction of judgments against the limited liability company or its members, or the limited liability partnership or its partners, based on negligence, wrongful acts, or errors and omissions, by means of:1. Deposit in trust, or in bank escrow, of such funds in the form of cash, bank certificates of deposit, or United States Treasury obligations; or2. A bank letter of credit or insurance company bond.(3) Upon any cancellation or other interruption in the insurance coverage required by 233 CMR 4.04(1), or any failure to maintain the designated and segregated capital fund required by 233 CMR 4.04(2), a limited liability company or limited liability partnership shall immediately cease providing or offering to provide Chiropractic Treatment until such time as the limited liability company or limited liability partnership is in compliance with 233 CMR 4.04.(4) A limited liability company or limited liability partnership shall notify the Board in writing, within five business days, if the insurance coverage required by 233 CMR 4.04(1) is cancelled or otherwise interrupted, or if the designated and segregated capital fund required by 233 CMR 4.04(2) falls below the amount required by 233 CMR 4.04(2). Failure to provide such notice to the Board shall subject the members or partners of that limited liability company or limited liability partnership who are registered chiropractors to disciplinary action by the Board pursuant to 233 CMR 4.06.(5) A limited liability company or limited liability partnership which provides or offers to provide Chiropractic Treatment may be required to provide satisfactory written verification of compliance with 233 CMR 4.04(1) or (2) at any time upon request by any duly authorized representative of the Board.Amended by Mass Register Issue 1333, eff. 2/24/2017.