An Act to modernize the Massachusetts insurer’s insolvency fund

This bill updates the Massachusetts Insurers Insolvency Fund to improve how the state handles claims when insurance companies fail. It establishes clear definitions for key terms like "covered claim" and "high net worth insured," ensuring that only policyholders residing in Massachusetts or owning property there receive protection, while excluding claims from wealthy individuals and corporate affiliates. The legislation also clarifies which specific costs, such as legal fees and interest, are not covered by the fund, and sets a future effective date for determining insolvency. These changes aim to create a more transparent and structured process for distributing funds to eligible victims of insurer insolvency.