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Massachusetts insurance laws

Insurance regulations, rate filing requirements, department info, and recent bulletins for Massachusetts. Updated Mar 31, 2026.

Department of Insurance

DepartmentMassachusetts Division of Insurance
CommissionerMichael T. Caljouw
Rate Filing SystemFile & Use
Regulatory CodeM.G.L. c. 175, §§ 1-230 (Insurance); M.G.L. c. 176D (Unfair Insurance Practices)
Overview

Massachusetts has a highly regulated insurance market with strong consumer protections and parity requirements. The Division of Insurance actively oversees rates, forms, and insurer solvency while enforcing strict mental health parity laws. The state operates managed competition for auto insurance and maintains comprehensive coverage mandates across all lines.

Auto Insurance

Min Pd$30,000
Pip Min$8,000
StatuteM.G.L. c. 90, § 34A; M.G.L. c. 175, §§ 113A-113S
Fault SystemModified No-Fault (Tort with PIP)
Min Bi Per Person$25,000
Uninsured Penalty$500-$5,000 fine, 60-day license suspension (first offense), potential imprisonment up to 1 year
Min Bi Per Accident$50,000
Sr22 Duration YearsN/A
Noncompliance PenaltyInsurers face fines up to $10,000 per violation, license suspension or revocation, and restitution orders for unfair practices under M.G.L. c. 176D
Rate Filing RequirementFile & Use system; insurers must file rates with the Division but may use them immediately; rates must not be excessive, inadequate, or unfairly discriminatory
Avg Full Coverage Premium$2,100

Notable Laws

  • M.G.L. c. 90, § 34A - Compulsory motor vehicle liability insurance requirements and minimum coverage limits
  • M.G.L. c. 175, § 113L - Mandatory uninsured and underinsured motorist coverage provisions
  • M.G.L. c. 175, § 4E - Prohibition on use of credit information in underwriting or rating private passenger auto insurance
  • M.G.L. c. 175, § 113B 1/2 - Prohibition on premium surcharges for at-fault accidents not meeting minor or major accident criteria
  • Chapter 275 of the Acts of 2024 - Increased minimum coverage limits effective July 1, 2025 (BI from $20k/$40k to $25k/$50k; PD from $5k to $30k)

Homeowners Insurance

StatuteM.G.L. c. 175, §§ 99, 193P (Fire/Homeowners Insurance); M.G.L. c. 175, §§ 187C-187D (Cancellation)
Wind PoolNo state wind pool; coastal properties may have higher wind/hurricane deductibles (1-5%)
Fair Plan NameMassachusetts Property Insurance Underwriting Association (MPIUA)
Noncompliance PenaltyInsurers face fines for improper cancellation or non-renewal; license suspension for pattern of unfair practices; refunds ordered for violations under M.G.L. c. 176D
Rate Filing RequirementFile & Use; insurers must file rates with Division but may use immediately; rates must not be excessive, inadequate, or unfairly discriminatory

Notable Laws

  • M.G.L. c. 175, § 193P - Requires 45-day written notice of non-renewal with specific reasons; notice must be sent to insured and agent
  • M.G.L. c. 175, § 187D - Cancellation for non-payment requires 10-day notice; other mid-term cancellations require 20-day notice
  • M.G.L. c. 175, §§ 4A-4C - Annual reporting requirements for cancellations and non-renewals; prohibits discrimination in provision or renewal
  • M.G.L. c. 175, § 99 - Standard form and content requirements for fire insurance policies; policies cannot exceed 7-year term
  • Bulletin 2025-02 (April 30, 2025) - Guidance on underwriting actions based on aerial imaging; insurers must allow policyholders to address concerns

Recent Bulletins

Requirements for 2026 Licensure of Pharmacy Benefit Managers

#Bulletin 2025-042025-09-18Effective: 2026-01-01

Establishes licensing requirements for pharmacy benefit managers (PBMs) operating in Massachusetts for the 2026 calendar year, including application procedures and compliance obligations.

View bulletin

Coverage for Vaccines

#Bulletin 2025-032025-09-03

Clarifies health insurance carriers' obligations to cover vaccines as preventive services with no cost-sharing under federal and state law.

View bulletin

Underwriting Actions Based on the Use of Aerial Imaging

#Bulletin 2025-022025-04-30

Provides guidance to property insurers on using aerial imagery in underwriting decisions; requires insurers to allow policyholders opportunity to address concerns before taking adverse action.

View bulletin

Guidance for Massachusetts Domestic Insurers on Managing the Financial Risks for Climate

#Bulletin 2024-112024-12-09

Directs domestic insurers to assess and manage climate-related financial risks to ensure long-term solvency and market stability.

View bulletin

The Use of Artificial Intelligence Systems in Insurance

#Bulletin 2024-102024-12-09

Establishes framework for insurers' use of AI in underwriting, pricing, and claims; requires transparency, fairness testing, and human oversight of AI-driven decisions.

View bulletin

Recent Law Changes

Chapter 343 of the Acts of 20242024Health Insurance

An Act Enhancing the Market Review Process

Comprehensive health care oversight legislation expanding Health Policy Commission authority over provider and insurer transactions; directs Division of Insurance to consider affordability in rate review; creates primary care task force.

Health insurers must justify rate increases with greater scrutiny on affordability; material health care transactions require enhanced regulatory review.

Effective: 2025-01-15

Chapter 275 of the Acts of 20242024Auto Insurance

An Act Relative to Motor Vehicle Insurance

Increases mandatory minimum auto insurance coverage limits: bodily injury from $20,000/$40,000 to $25,000/$50,000 per person/accident; property damage from $5,000 to $30,000.

All Massachusetts drivers must carry higher minimum coverage limits, resulting in increased premiums but better protection for accident victims.

Effective: 2025-07-01

Chapter 177 of the Acts of 20222022Health Insurance

An Act Addressing Barriers to Care for Mental Health

Comprehensive mental health reform eliminating prior authorization for acute behavioral health treatment; mandates annual mental health wellness exams; requires real-time bed availability tracking; strengthens parity enforcement.

Health insurers must cover mental health services without prior authorization barriers and provide annual wellness exams; reduces administrative burden for mental health providers.

Effective: 2022-11-08

Chapter 254 of the Acts of 20222022Health Insurance

An Act Relative to Step Therapy and Patient Safety

Regulates step therapy protocols requiring evidence-based clinical criteria; mandates exception process for contraindicated drugs or patient stability; requires 3-business-day (24-hour urgent) response times.

Health insurers must provide transparent step therapy exception processes, reducing delays in access to medically necessary prescription drugs.

Effective: 2023-10-01

Chapter 434 of the Acts of 20122012Life Insurance

An Act Relative to Life Settlements and Stranger Originated Life Insurance

Establishes comprehensive regulatory framework for life settlement industry; prohibits stranger-originated life insurance (STOLI); requires licensing of life settlement providers and brokers; prohibits policy transfers within first two years.

Life settlement providers and brokers must obtain licenses and comply with disclosure requirements; policyholders receive enhanced consumer protections.

Effective: 2013-04-08

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