Bill No.:         SF0016                                               Drafter:     LGC

 

LSO No.:       14LSO-0054                                     Effective Date:        7/1/2014

 

Enrolled Act No.:    SEA0009

 

Chapter No.:                        CH0021

 

Prime Sponsor:       Joint Corporations, Elections and Political Subdivisions Interim Committee

 

Catch Title:              Insurance-guaranty association model act.

 

Subject:                     Secondary insurance for insolvent insurance providers.

 

Summary/Major Elements:

 

·        The insurance guaranty association provides secondary insurance if an insurance company becomes insolvent.

 

·        This bill updates the insurance guaranty association's statutory framework by:

 

·        Increasing coverage limits for long term care, disability and health insurance and annuity contracts;

 

·        Repealing the distinction between domestic and foreign impaired insurers;

 

·        Providing authority for legal actions and subrogation claims;

 

·        Amending process for authorizing and protesting assessments;

 

·        Updating the statutes to reflect the latest version of the model act.

 

Comments:  

 

·          Creates/amends major program:  Insurance Guaranty Association