An Act to modernize the Massachusetts insurer’s insolvency fund

This bill updates the Massachusetts insurer's insolvency fund to explicitly include cybersecurity insurance policies that cover data breaches and related digital threats. It directly affects property and casualty insurers and policyholders by expanding the scope of coverage under the state's existing financial protection rules. The legislation clarifies definitions for terms like "affiliate" and "covered claim" to ensure the fund protects residents and local businesses while excluding certain insurance types like life, health, and government-backed policies. Additionally, the bill specifies that affiliates of an insolvent insurer cannot file claims against the fund, preventing potential conflicts of interest. These changes aim to modernize the regulatory framework to address emerging risks in the insurance market.