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