MA H1250

Prohibits insurance policies covering Massachusetts residents from including "discretionary authority" clauses that allow insurers to unilaterally determine benefit eligibility or interpret policy terms in ways that would receive deferential review by courts

Applies to life insurance, health insurance, annuities, accident insurance, long-term care insurance, and disability insurance policies issued, delivered, or renewed in or outside Massachusetts

Renders void and unenforceable any policy provisions reserving discretionary authority to insurers or containing standards of interpretation inconsistent with Massachusetts law

Requires the Commissioner of Insurance to reject approval of health, life, or disability policies containing discretionary authority clauses, misleading headings, deceptive exceptions, ambiguous language, or illegible formatting

Permits insurers to include provisions explaining that they apply contract terms for routine decision-making, provided such language cannot trigger deferential judicial review