Massachusetts General Laws ch. 255C sec. 16 – Prohibited provisions in agreements
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Section 16. No premium finance agreement shall contain any provision whereby
Terms Used In Massachusetts General Laws ch. 255C sec. 16
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
(a) in the absence of default of the insured, the premium finance agency holding the agreement may, arbitrarily and without reasonable cause, accelerate the maturity of any part or all of the amount owing thereunder;
(b) a power of attorney is given to confess judgment in this commonwealth; or
(c) the insured relieves the insurance agent or broker or the premium finance agency holding the agreement from liability for any legal rights or remedies which the insured may otherwise have against him.