Chapter 176 of the Acts of 2010, signed by Governor Patrick on July 25, repeals Mass. Gen. Laws Chapter 178A, the statute that establishes the Savings Bank Life Insurance Company of Massachusetts (SBLI). Under the Act, SBLI has until December 31, 2010 to adopt restated articles of organization and by-laws in forms permissible for other domestic stock life insurance companies. The repeal will take effect on the date the restated articles of organization are filed with the Secretary of the Commonwealth.
Nutter Notes: The legislative change will release SBLI from a requirement in Mass. Gen. Laws Chapter 178A that SBLI price life insurance on a gender-neutral basis, which put SBLI at a competitive disadvantage in connection with certain policies. The Massachusetts Division of Insurance will require banks that currently are only licensed as agents of SBLI to obtain a bank insurance license if they wish to continue selling SBLI policies.