The Massachusetts Property Insurance Underwriting Association (MPIUA) has announced a decision by its Board of Directors to pursue additional strategies to depopulate. A recent MPIUA notice explains that its Board of Directors has "authorized the creation of a Clearinghouse to assist in the facilitation of the depopulation effort."
Admitted Massachusetts insurance companies may be able to participate in the Clearinghouse under certain conditions as set forth by the MPIUA, which includes a signed Clearinghouse Agreement.
With regard to ownership of renewals, the notice explains the following:
"The Clearinghouse Agreement and procedure recognizes the Producer's ownership of the renewal rights in the policy. The Clearinghouse incorporates the producer's ownership into the procedures by permitting a Member Company to participate only if the Company first has a contractual relationship with the producer under an Agency Agreement or a Limited Servicing Agreement. Further, any offer must be made through the insurance producer listed on the MPIUA policy. Additionally, the Company may contact the listed Producer to obtain more information on a risk it is interested in insuring."
MPIUA provided the following "Basic Flow" of expectations for the project.