Title 38a — Title 38a: Insurance

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.

Sec. 38a-894. (Formerly Sec. 38-114a). Federal Riot Reinsurance Reimbursement Fund. There is created a fund to be known as the “Federal Riot Reinsurance Reimbursement Fund”, hereinafter referred to as “the fund”, which shall be operated under the joint control of the State Treasu…

Sec. 38a-895. (Formerly Sec. 38-114b). Reimbursement of Secretary of Housing and Urban Development for reinsurance. The fund shall reimburse the Secretary of the Department of Housing and Urban Development in an amount up to five per cent of the aggregate property insurance premi…

Sec. 38a-896. (Formerly Sec. 38-114c). Assessment of insurers. (a) Whenever the secretary shall present to the state a request for reimbursement under the provisions of sections 38a-894 to 38a-898, inclusive, the fund shall immediately assess all insurers which, during the calend…

Sec. 38a-897. (Formerly Sec. 38-114d). Additional premium charged on property insurance. Notwithstanding the provisions of sections 38a-663 to 38a-696, inclusive, whenever the fund assesses insurers in accordance with sections 38a-894 to 38a-898, inclusive, each insurer shall cha…

Sec. 38a-898. (Formerly Sec. 38-114e). Insolvency of insurer. If any insurer fails, by reason of insolvency, to pay any assessment, the fund shall cause the reimbursement ratios, computed under subsection (a) of section 38a-896, to be immediately recalculated, excluding therefrom…

Secs. 38a-899 to 38a-902. Reserved for future use.

Sec. 38a-903. (Formerly Sec. 38-421). Short title: Insurers Rehabilitation and Liquidation Act. Interpretation. Applicability. Sections 38a-903 to 38a-961, inclusive, may be cited as the “Insurers Rehabilitation and Liquidation Act”. Said sections shall not be interpreted to limi…

Sec. 38a-904. (Formerly Sec. 38-422). Application of provisions. Sections 38a-903 to 38a-961, inclusive, shall apply to: (1) All insurers who are doing, or have done, an insurance business in this state and against whom claims arising from that business may exist now or in the fu…

Sec. 38a-905. (Formerly Sec. 38-423). Definitions. For the purposes of sections 38a-903 to 38a-961, inclusive: (1) “Alien insurer domiciled in this state” means a United States branch. (2) “Ancillary state” means any state other than a domiciliary state. (3) “Commissioner” means …

Sec. 38a-906. (Formerly Sec. 38-424). Jurisdiction and venue. (a) No delinquency proceeding shall be commenced under sections 38a-903 to 38a-961, inclusive, by anyone other than the commissioner and no court shall have jurisdiction to entertain, hear or determine any proceeding c…

Sec. 38a-907. (Formerly Sec. 38-425). Injunctions, orders and stays. (a) The conservation, rehabilitation and liquidation of insurance companies and other persons subject to the provisions of sections 38a-903 to 38a-961, inclusive, are a matter of vital public interest and affect…

Sec. 38a-908. (Formerly Sec. 38-426). Cooperation of officers, owners and employees. Penalties. (a) Any present or former officer, manager, director, trustee, owner, employee or agent of any insurer, or any other persons with authority over or in charge of any segment of the insu…

Sec. 38a-909. (Formerly Sec. 38-427). Persons afforded protection. Official immunity. Segregation of funds. Bonds. (a) For the purposes of this section the persons entitled to protection under this section shall be: (1) All receivers responsible for the conduct of a delinquency p…

Sec. 38a-910. (Formerly Sec. 38-428). Continuation of delinquency proceedings. Section 38a-910 is repealed, effective October 1, 2018. (P.A. 79-382, S. 8; P.A. 18-158, S. 19.)

Sec. 38a-911. (Formerly Sec. 38-429). Delinquency proceeding: Limitations and conditions. No insurer that is subject to any delinquency proceedings, whether formal, informal, administrative or judicial, shall: (1) Be permitted to solicit or accept new business or request or accep…

Sec. 38a-912. (Formerly Sec. 38-430). Seizure order by court. (a) The commissioner may file in the Superior Court of this state a petition alleging, with respect to a domestic insurer: (1) That there exist any grounds that would justify a court order for a formal delinquency proc…

Sec. 38a-913. (Formerly Sec. 38-431). Confidentiality of proceedings. In all proceedings and judicial reviews thereof pursuant to section 38a-912, all records of the insurer, other documents and all Insurance Department files and court records and papers, so far as they pertain t…

Sec. 38a-913a. Records of delinquent insurer. Use as evidence. Applicability of Freedom of Information Act. Costs of producing records. (a) All records or certified copies thereof of any delinquent insurer which come into the possession of the receiver and are held by the receive…

Sec. 38a-914. (Formerly Sec. 38-432). Grounds for rehabilitation. The commissioner may apply by petition to the Superior Court for an order authorizing the commissioner to rehabilitate a domestic insurer or an alien insurer domiciled in this state on any one or more of the follow…

Sec. 38a-915. (Formerly Sec. 38-433). Rehabilitation orders. Appointment of judge to supervise rehabilitation. Accounting. Appeals. (a) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the commissioner and his…

Sec. 38a-916. (Formerly Sec. 38-434). Powers and duties of the rehabilitator. Advisory committees. (a) The commissioner as rehabilitator may appoint one or more special deputies, who shall have all the powers and responsibilities of the rehabilitator granted under this section, a…

Sec. 38a-917. (Formerly Sec. 38-435). Actions by and against rehabilitator. (a) Any court in this state before which any action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against the insurer is entered sh…

Sec. 38a-918. (Formerly Sec. 38-436). Order of liquidation. Termination of rehabilitation. (a) Whenever the commissioner believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders or the public, or would be futil…

Sec. 38a-919. (Formerly Sec. 38-437). Grounds for liquidation. The commissioner may petition the Superior Court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis: (a) Of any ground for an order of rehabilitation as…

Sec. 38a-920. (Formerly Sec. 38-438). Liquidation orders. Financial reports: Contents and filings. Handling of claim obligations. Appointment of judge to supervise liquidation. Preference of claims. Appeals. (a) An order to liquidate the business of a domestic insurer shall appoi…

Sec. 38a-921. (Formerly Sec. 38-439). Continuance of coverage. Cancellation of bond or surety undertaking. (a) Notwithstanding any policy or contract language or any other provision of law, all policies, insurance contracts, other than reinsurance, surety bonds or surety undertak…

Sec. 38a-922. (Formerly Sec. 38-440). Dissolution of insurer. The commissioner may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he applies for a liquidation order…

Sec. 38a-923. (Formerly Sec. 38-441). Powers of liquidator. (a) The liquidator shall have the power: (1) To appoint a special deputy to act for such liquidator under sections 38a-903 to 38a-961, inclusive, and to determine such special deputy's reasonable compensation. The specia…

Sec. 38a-924. (Formerly Sec. 38-442). Notice to creditors and others. Requirements. Exceptions. (a) Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible: (1) By first class mail and electronic commu…

Sec. 38a-925. (Formerly Sec. 38-443). Duties of agents. Penalty. (a) Each person who receives notice in the form prescribed in section 38a-924 that an insurer such person represents as an agent is the subject of a liquidation order shall, within thirty days of such notice, provid…

Sec. 38a-926. (Formerly Sec. 38-444). Actions by and against liquidator. (a) Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no action at law or equity shall be brought against the insurer or liquidator, whet…