The bill outlines the findings of the Division of Insurance (DOI) regarding credit insurance in Massachusetts for the calendar year 2025, as mandated by M.G.L. c. 175, 117C(b). The report indicates a significant decline in the credit insurance market, with total business dropping to approximately $1.5 million, attributed to the rise of debt cancellation and suspension products offered by banks, which are not regulated as insurance. The report details the types of credit insurance available, including credit life, credit disability income, and credit involuntary unemployment insurance, each with specific regulatory standards and loss ratio requirements.

Additionally, the bill includes new legal language regarding the calculation of loss ratios for credit insurance, specifying that the loss ratio is determined by the formula: Incurred Claims divided by Earned Premiums. The report highlights that only two companies were actively writing credit insurance in 2025, with the majority of earned premiums coming from these entities. The DOI is tasked with reviewing loss ratios to ensure compliance with statutory minimums, but due to low premium levels, companies were not required to adjust rates this year. The overall trend suggests a continued decline in the credit insurance market moving forward.