Mass. Gen. Laws » Part I Title XXII Chapter 176B
Massachusetts General Laws

Mass. Gen. Laws ch. 176B, § 13 (2026)

Grounds for enjoining transaction of business; receivers

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Section 13. If the commissioner is satisfied, as to any medical service corporation, that (1) it has failed to comply with the provisions of its charter, or (2) it is being operated for profit, or (3) it is fraudulently conducted, or (4) its condition is such as to render its further transaction of business hazardous to the public or to its subscribers, or (5) its officers and agents have refused to submit to an examination under section nine, or (6) it has exceeded its powers, or (7) it has violated any provision of law, or (8) it has compromised, or is attempting to compromise, with its creditors on the ground that it is financially unable to pay its claims in full, or (9) it is insolvent, he may apply to the supreme judicial court for an injunction restraining it from further proceeding with its business.

If the right of any person or group of persons to become a participating physician, chiropractor, or nurse midwife, as defined in section one, is denied because of arbitrary or unfair discrimination, any such person or group of persons so aggrieved may apply to the supreme judicial court for an injunction restraining such corporation from further proceeding with its business.

The court may, after application by the commissioner or any person or group of persons aggrieved as aforesaid, forthwith issue a temporary injunction restraining the transaction of any business, and it may, after a full hearing, make the injunction permanent, and appoint one or more receivers to take possession of the books, papers, moneys and other assets of the corporation, settle its affairs, and distribute its funds to those entitled thereto, subject to such rules and orders as the court may prescribe.

Notes of Decisions
Cited in 3 cases, 1976–1986 · leading case: Nelson v. Blue Shield of Massachusetts, Inc., 387 N.E.2d 589 (Mass. 1979).
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Nelson v. Blue Shield of Massachusetts, Inc., 387 N.E.2d 589 (Mass. 1979). · cites it 2× “(Federation), and fifteen doctors constituting the board of governors of the Federation, began as an action in this court to appoint a receiver for Blue Shield under G. L. c. 176B, §§ 13,17. The complaint was dismissed without prejudice by a single justice of this court, who…”
SDK Med. Comput. Servs. Corp. v. Prof'l Operating Mgmt. Grp., Inc., 354 N.E.2d 852 (Mass. 1976). “176B, § 13, which states in part: “If the commissioner [of insurance] is satisfied, as to any medical service corporation, that (1) it has failed to comply with the provisions of its charter, or (2) it is being operated for profit, or.”
Blue Shield of Massachusetts, Inc. v. Bd. of Review in the Div. of Ins., 492 N.E.2d 99 (Mass. App. Ct. 1986). “Moreover, Blue Shield suggests, the legislative history of G. L. c. 176B, § 13, discloses a legislative intent to vest rights of participation in physicians, chiropractors, and nurse midwives which other health care providers, such as psychologists, do not enjoy.”
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