2006 Massachusetts Code - Chapter 178A — Section 9. Policyholders protective board; membership; powers and duties;review of operations; compensation.

Section 9. There is hereby established a body corporate to be known as the policyholders protective board, hereinafter in this section and in section ten called the board, consisting of seven members, as herein provided and hereinafter referred to as directors. The governor shall appoint seven original directors of the board, one for a term of one year, one for a term of two years, one for a term of three years, one for a term of four years, one for a term of five years, one for a term of six years, and one for a term of seven years; provided, however, that the terms of the original directors shall commence on the date of appointment and shall terminate on June thirtieth in the year of termination. Upon the termination of each of said terms, the governor shall appoint a successor for a term of seven years commencing on July first in the year of appointment. The chairperson shall be designated by the governor for a term of two years. Upon the appointment of said seven original directors, the board shall be empowered to exercise its duties and responsibilities.

Four of the directors of said board shall be persons who are policyholders of savings bank life insurance, none of whom shall be corporators, trustees, directors, officers, employees or agents of a bank; provided, however, that any such person shall be qualified by training and experience in one of the following fields: business management, insurance, investments, accounting or law. Such four directors of the board shall designate one of their number to serve as a director of the company, with full powers as such director of the company.

Three directors of said board shall be policyholders of savings bank life insurance who shall be trustees, directors, officers, employees, or agents of a savings bank owning stock in the company. No person who is an officer, employee or agent of any life insurer other than the company shall be eligible to serve as a director of said board. The directors of the board shall elect, from their own number, a vice-chairman and a treasurer, and shall adopt by-laws governing the operation of said board.

The directors of the board shall review the financial operations of the company on a continuing basis and make such recommendations to the company as they deem appropriate to insure the ability of the company to offer safe, low cost insurance. Copies of such recommendations shall be filed with the commissioner and the executive office of consumer affairs and business regulation. Except as provided above, the directors of the board shall have the right to attend meetings of the board of directors of the company and to participate therein but shall not have a vote on any actions taken by said directors of the company. The directors of the board shall be compensated by the company for attendance at meetings of the directors of the company at the same rate of compensation and expense reimbursements received by directors of the company.