Title 38a — Title 38a: Insurance

Sec. 38a-836. (Formerly Sec. 38-273). Short title: Connecticut Insurance Guaranty Association Act. Sections 38a-836 to 38a-853, inclusive, shall be known and may be cited as the “Connecticut Insurance Guaranty Association Act”. (1971, P.A. 466, S. 1.) History: Sec. 38-273 transfe…

Sec. 38a-837. (Formerly Sec. 38-274). Application of chapter. Sections 38a-836 to 38a-853, inclusive, shall apply to all kinds of direct insurance, except: (1) Life, annuity, health or disability insurance; (2) Mortgage guaranty, financial guaranty or other forms of insurance off…

Sec. 38a-838. (Formerly Sec. 38-275). Definitions. The following terms as used in sections 38a-836 to 38a-853, inclusive, unless the context otherwise requires or a different meaning is specifically prescribed, shall have the following meanings: (1) “Account” means any one of the…

Sec. 38a-839. (Formerly Sec. 38-276). Connecticut Insurance Guaranty Association created. Membership. Function. Accounts. There is created a nonprofit unincorporated legal entity to be known as the Connecticut Insurance Guaranty Association. All insurers defined as member insurer…

Sec. 38a-840. (Formerly Sec. 38-277). Board of directors. Selection. Reimbursement for expenses. (a) The board of directors of said association shall consist of not less than five nor more than nine persons serving terms as established in the plan of operation under section 38a-8…

Sec. 38a-841. (Formerly Sec. 38-278). Obligations and rights of association. Limitations. Assessments. Investigation of claims. Right to intervene in court proceedings. (a) Said association shall: (1) Be obligated to the extent of the covered claims existing prior to the determin…

Sec. 38a-842. (Formerly Sec. 38-279). Plan of operation. (a)(1) Said association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable, and equitable administration of said association. The plan of ope…

Sec. 38a-843. (Formerly Sec. 38-280). Insolvent insurers. Penalty. Petition to show cause. (a) The commissioner shall: (1) Notify said association of the existence of an insolvent insurer, and notify the chairman of the Workers' Compensation Commission and the State Treasurer of …

Sec. 38a-844. (Formerly Sec. 38-281). Assignment of rights under policy. Receiver or liquidator bound by settlements. Preservation of rights of association. Right of recovery. (a) Any person recovering any moneys under sections 38a-836 to 38a-853, inclusive, shall be deemed to ha…

Sec. 38a-845. (Formerly Sec. 38-282). Exhaustion of rights under policy prior to claim against association. Claims recoverable from more than one association. Persons required to exhaust rights under governmental insurance or guaranty program. (a) Any person having a claim agains…

Sec. 38a-846. (Formerly Sec. 38-283). Detection and prevention of insurer insolvencies. To aid in the detection and prevention of insurer insolvencies: (1) The board of directors, upon majority vote, shall notify the commissioner of any information which it may have indicating an…

Sec. 38a-847. (Formerly Sec. 38-284). Association subject to examination and regulation by commissioner. Annual financial report. Said association shall be subject to examination and regulation by the commissioner. The board of directors shall submit, not later than March thirtie…

Sec. 38a-848. (Formerly Sec. 38-285). Exemption from fees and taxes. Exception. Said association shall be exempt from payment of all fees and all taxes levied by the state or any of its subdivisions provided it shall not be exempt from the payment of real or personal property tax…

Sec. 38a-849. (Formerly Sec. 38-286). Rates and premiums to include recoupment of assessments. Section 38a-849 is repealed, effective July 1, 2000. (1971, P.A. 466, S. 14; P.A. 00-174, S. 82, 83.)

Sec. 38a-850. (Formerly Sec. 38-287). No liability for action taken in performance of powers and duties. No liability for failure to act. There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, said association or it…

Sec. 38a-851. (Formerly Sec. 38-288). Association rights in proceedings to which insolvent insurer is party. Access to insolvent insurer's records. (a) All proceedings in which an insolvent insurer is a party or is obligated to defend an insured as a party in any court in this st…

Sec. 38a-852. (Formerly Sec. 38-288a). Prohibited unfair trade practice. It shall be a prohibited unfair trade practice and a violation of section 38a-815 for any person to make use in any manner of the protection afforded by sections 38a-836 to 38a-853, inclusive, in the solicit…

Sec. 38a-853. (Formerly Sec. 38-289). Regulations. The commissioner may promulgate such reasonable regulations as he deems necessary to carry out the intent of sections 38a-836 to 38a-853, inclusive. Such regulations may include definitions of the kinds of insurance specified in …

Secs. 38a-854 to 38a-857. Reserved for future use. PART II* CONNECTICUT LIFE AND HEALTH INSURANCEGUARANTY ASSOCIATION ACT *Annotation to former chapter 689: Cited. 173 C. 352.

Sec. 38a-858. (Formerly Sec. 38-301). Short title: Connecticut Life and Health Insurance Guaranty Association Act. Sections 38a-858 to 38a-875, inclusive, shall be known and may be cited as the “Connecticut Life and Health Insurance Guaranty Association Act”. (1972, P.A. 280, S. …

Sec. 38a-859. (Formerly Sec. 38-302). Association of member insurers. To provide protection for persons covered under section 38a-860, subject to certain limitations, against failure in the performance of contractual obligations under life, health and annuity policies, plans or c…

Sec. 38a-860. (Formerly Sec. 38-303). Application of chapter. Obligations of association. (a) Sections 38a-858 to 38a-875, inclusive, shall provide coverage for the policies and contracts specified in subsection (f) of this section: (1) To any person, except for a nonresident cer…

Sec. 38a-861. (Formerly Sec. 38-304). Liberal construction. Sections 38a-858 to 38a-875, inclusive, shall be liberally construed to effect the purpose under section 38a-859 which shall constitute an aid and guide to interpretation. (1972, P.A. 280, S. 4.) History: Sec. 38-304 tra…

Sec. 38a-862. (Formerly Sec. 38-305). Definitions. As used in sections 38a-858 to 38a-875, inclusive: (1) “Account” means either of the two accounts created under section 38a-863; (2) “Association” means the Connecticut Life and Health Insurance Guaranty Association created under…

Sec. 38a-863. (Formerly Sec. 38-306). Creation of association. Accounts. Supervision. (a) There is created a nonprofit legal entity to be known as the Connecticut Life and Health Insurance Guaranty Association. All member insurers shall be and remain members of the association as…

Sec. 38a-864. (Formerly Sec. 38-307). Board of directors. (a) The board of directors of the association shall consist of not less than seven nor more than eleven members serving terms as established in the plan of operation. The members of the board shall be selected by member in…

Sec. 38a-865. (Formerly Sec. 38-308). Powers. (a) If a member insurer is an impaired insurer, the association may, in its discretion, and subject to any conditions imposed by the association that do not impair the contractual obligations of the impaired insurer and that are appro…

Sec. 38a-866. (Formerly Sec. 38-309). Assessments. (a) For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board of directors shall assess the member insurers, separately for each account, at such times and for such amounts …

Sec. 38a-867. (Formerly Sec. 38-310). Plan of operation. (a)(1) The association shall submit to the commissioner a plan of operation and any amendments thereto necessary or suitable to assure the fair, reasonable and equitable administration of the association. The plan of operat…

Sec. 38a-868. (Formerly Sec. 38-311). Duties of commissioner. In addition to the duties and powers enumerated elsewhere in sections 38a-858 to 38a-875, inclusive: (a) The commissioner shall: (1) Notify the board of directors of the existence of an impaired insurer not later than …

Sec. 38a-869. (Formerly Sec. 38-312). Action by board of directors. Examination of insurer. To aid in the detection and prevention of insurer impairments: (a) The board of directors shall, upon majority vote, notify the commissioner of any information indicating any member insure…

Sec. 38a-870. (Formerly Sec. 38-313). Special deputy to supervise liquidation, rehabilitation or conservation. The association may recommend a natural person to serve as a special deputy to act for the commissioner and under his supervision in the liquidation, rehabilitation or c…

Sec. 38a-871. (Formerly Sec. 38-314). Liability for unpaid assessments. Records. Use of assets of impaired insurer. Distributions. (a) Nothing in sections 38a-858 to 38a-875, inclusive, shall be construed to reduce the liability for unpaid assessments of the insureds of an impair…

Sec. 38a-872. (Formerly Sec. 38-315). Examination and regulation of association. Reports. The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner, not later than May first of each year, a financia…

Sec. 38a-873. (Formerly Sec. 38-316). Exemption from fees and taxes. The association shall be exempt from payment of all fees and all taxes levied by this state or any of its subdivisions, except taxes levied on real or personal property. (1972, P.A. 280, S. 16.) History: Sec. 38…

Sec. 38a-874. (Formerly Sec. 38-317). Immunity. There shall be no liability on the part of, and no cause of action of any nature shall arise against, any member insurer or its agents or employees, the association or its agents or employees, members of the board of directors, or t…

Sec. 38a-875. (Formerly Sec. 38-318). Stay of proceedings in which impaired insurer a party. All proceedings in which the impaired insurer is a party in any court in this state shall be stayed one hundred eighty days from the date an order of liquidation, rehabilitation or conser…

Secs. 38a-876 to 38a-879. Reserved for future use. PART III BROKERED TRANSACTIONS GUARANTY FUND

Sec. 38a-880. Brokered Transactions Guaranty Fund. The Insurance Department shall establish and maintain a Brokered Transactions Guaranty Fund from which any resident aggrieved by an action of an insurance producer duly licensed in this state under section 38a-769, or an unlicens…

Sec. 38a-881. Fee payable to fund. Any individual who is licensed as an insurance broker or an insurance agent on October 1, 1989, shall pay a fee of ten dollars which shall be credited to the Brokered Transactions Guaranty Fund. Any individual who receives an insurance broker's …

Sec. 38a-882. Level of guaranty fund. Credits to General Fund. Assessment of additional fee. (a) The Insurance Department shall maintain the Brokered Transactions Guaranty Fund at a level not to exceed one hundred thousand dollars and to this intent moneys received under section …

Sec. 38a-883. Limitation of actions. No application to recover compensation under sections 38a-880 to 38a-889, inclusive, which might subsequently result in an order for collection from the Brokered Transactions Guaranty Fund shall be brought later than two years from the action …

Sec. 38a-884. Procedure. (a) Any person aggrieved under section 38a-880 may apply to the Insurance Department for an order directing payment out of the Brokered Transactions Guaranty Fund subject to the limitations stated in said section and the limitations specified in this sect…

Sec. 38a-885. Penalty for false or untrue claim. Any person filing with the department any notice, statement or other document required under the provisions of section 38a-884 that is false or untrue or contains any material misstatement of fact shall be fined not less than three…

Sec. 38a-886. Procedure. Application to the Superior Court. When the department receives an application, as provided in section 38a-884, the Attorney General, at the request of the commissioner, may apply in the name of the state of Connecticut to the Superior Court for an order …

Sec. 38a-887. Payment from guaranty fund. When the commissioner has caused to be paid from the Brokered Transactions Guaranty Fund any sum to the aggrieved person, the department shall be subrogated to all of the rights of the aggrieved person up to the amount paid, and the aggri…

Sec. 38a-888. Regulations. The Insurance Commissioner may adopt such regulations as he deems necessary, in accordance with chapter 54, to carry out the purposes of sections 38a-880 to 38a-889, inclusive. (P.A. 89-106, S. 9.)

Sec. 38a-889. Department rulings: Appeal. Any person aggrieved by any decision, order or regulation of the department under sections 38a-880 to 38a-888, inclusive, may appeal in accordance with the provisions of section 38a-19. (P.A. 89-106, S. 10.)

Secs. 38a-890 to 38a-893. Reserved for future use.