Title 38a — Title 38a: Insurance

Sec. 38a-927. (Formerly Sec. 38-445). List of assets. (a) As soon as practicable after the liquidation order but not later than one hundred twenty days thereafter, the liquidator shall prepare in duplicate a list of the insurer's assets. The list shall be amended or supplemented …

Sec. 38a-928. (Formerly Sec. 38-446). Fraudulent transfers prior to petition. (a) Every transfer made or suffered and every obligation incurred by an insurer within one year prior to the filing of a successful petition for rehabilitation or liquidation under sections 38a-903 to 3…

Sec. 38a-929. (Formerly Sec. 38-447). Fraudulent transfer after petition. (a) After a petition for rehabilitation or liquidation has been filed a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made …

Sec. 38a-930. (Formerly Sec. 38-448). Voidable preferences and liens. Exceptions. (a)(1) A preference is a transfer of any of the property of an insurer to or for the benefit of a creditor, for or on account of an antecedent debt, made or suffered by the insurer within one year b…

Sec. 38a-931. (Formerly Sec. 38-449). Claims of holders of void or voidable rights. (a) No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance, voidable under sections 38a-903 to 38a-961, inclusive, shall be allow…

Sec. 38a-932. (Formerly Sec. 38-450). Set-offs and counterclaims. Accounting statements. (a) Mutual debts or mutual credits, whether arising out of one or more contracts between the insurer and another person in connection with any action or proceeding under sections 38a-903 to 3…

Sec. 38a-933. (Formerly Sec. 38-451). Assessments. (a) As soon as practicable but not more than two years from the date of an order of liquidation pursuant to section 38a-920 of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:…

Sec. 38a-933a. Amounts recoverable. Affiliate liability. Timing of proceedings. (a) If an order instituting a delinquency proceeding against an insurer authorized to do business in this state is entered under this chapter, the receiver appointed under the order has a right to rec…

Sec. 38a-934. (Formerly Sec. 38-452.) Reinsurer's liability. The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment made directly…

Sec. 38a-935. (Formerly Sec. 38-453). Recovery of premiums owed. Penalty. Appeals. (a)(1) A producer, premium finance company or any other person, other than the insured, responsible for the payment of a premium shall pay any unpaid collected premium including any amount represen…

Sec. 38a-936. (Formerly Sec. 38-454). Liquidator's proposal to distribute assets. (a) Within one hundred twenty days of a final determination of insolvency of an insurer by a court of competent jurisdiction of this state, the liquidator shall make application to the court for app…

Sec. 38a-937. (Formerly Sec. 38-455). Filing of claims. (a) Proof of all claims shall be filed with the liquidator in the form required by section 38a-938 on or before the last day for filing specified in the notice required pursuant to section 38a-924, except that proof of claim…

Sec. 38a-938. (Formerly Sec. 38-456). Proof of claim. (a) Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable: (1) The particulars of the claim including the consideration given for it; (2) the identity and amo…

Sec. 38a-939. (Formerly Sec. 38-457). Special claims. (a) Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers are limited to payment for services rendered prior to the issuance of any or…

Sec. 38a-940. (Formerly Sec. 38-458). Special provisions for third party claims. Liquidator recommendations. Provisions not applicable to claims covered by guaranty association. (a) Whenever any third party asserts a cause of action against an insured of an insurer in liquidation…

Sec. 38a-941. (Formerly Sec. 38-459). Disputed claims. Hearings. Procedure. (a) When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the claimant or the claimant's attorney by first class mail at the address shown in …

Sec. 38a-942. (Formerly Sec. 38-460). Claims of surety. Whenever an obligee whose claim against an insurer is secured, in whole or in part, by the undertaking of another person, fails to prove and file that claim, the other person may do so in the obligee's name, and shall be sub…

Sec. 38a-943. (Formerly Sec. 38-461). Secured creditor's claims. (a) The value of any security held by a secured creditor shall be determined in one of the following ways, as the court may direct: (1) By converting the same into money according to the terms of the agreement pursu…

Sec. 38a-944. (Formerly Sec. 38-462). Priority of distribution of claims. (a) The priority of distribution of claims from the insurer's estate shall be in accordance with the order in which each class of claims is set forth in this section. Every claim in each class shall be paid…

Sec. 38a-944a. Additional rights. Netting agreements. Qualified financial contracts. Security arrangements. (a) Notwithstanding any provision of sections 38a-903 to 38a-961, inclusive, including any provision permitting the modification of contracts, or other law of a state, no p…

Sec. 38a-945. (Formerly Sec. 38-463). Liquidator's recommendations to the court. (a) The liquidator shall review all claims duly filed in the liquidation and shall make such further investigation as deemed necessary. The liquidator may compound, compromise or in any other manner …

Sec. 38a-946. (Formerly Sec. 38-464). Distribution of assets. Under the direction of the court, the liquidator shall pay distributions in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the liquidation …

Sec. 38a-947. (Formerly Sec. 38-465). Unclaimed and withheld funds. (a) All unclaimed funds subject to distribution remaining in the liquidator's hands when the liquidator is ready to apply to the court for discharge, including the amount distributable to any creditor, shareholde…

Sec. 38a-948. (Formerly Sec. 38-466). Termination of proceedings. (a) When all assets justifying the expense of collection and distribution have been collected and distributed under sections 38a-903 to 38a-961, inclusive, the liquidator shall apply to the court for discharge. The…

Sec. 38a-949. (Formerly Sec. 38-467). Reopening liquidation. After the liquidation proceeding has been terminated and the liquidator discharged, the commissioner or other interested party may at any time petition the Superior Court to reopen the proceedings for good cause, includ…

Sec. 38a-950. (Formerly Sec. 38-468). Disposition of records during and after termination of liquidation. Whenever it shall appear to the commissioner that the records of any insurer in process of liquidation or completely liquidated are no longer useful, he may recommend to the …

Sec. 38a-951. (Formerly Sec. 38-469). External audit of the receiver's books. The Superior Court may, as it deems desirable, cause audits to be made of the books of the commissioner relating to any receivership established under sections 38a-903 to 38a-961, inclusive, and a repor…

Sec. 38a-952. (Formerly Sec. 38-470). Conservation of property of foreign or alien insurers found in this state. Termination of conservation. Appointment of judge to supervise ancillary proceeding. (a) If a domiciliary liquidator has not been appointed, the commissioner may apply…

Sec. 38a-953. (Formerly Sec. 38-471). Liquidation of property of foreign or alien insurers found in this state. (a) If no domiciliary receiver has been appointed, the commissioner may apply to the Superior Court by verified petition for an order directing him to liquidate the ass…

Sec. 38a-954. (Formerly Sec. 38-472). Domiciliary liquidators in other states. (a) The domiciliary liquidator of an insurer domiciled in a reciprocal state shall, except as to special deposits and security on secured claims pursuant to subsection (c) of section 38a-955, be vested…

Sec. 38a-955. (Formerly Sec. 38-473). Ancillary formal proceedings. (a) If a domiciliary liquidator has been appointed for an insurer not domiciled in this state, the commissioner may file a petition with the Superior Court requesting appointment as ancillary receiver in this sta…

Sec. 38a-956. (Formerly Sec. 38-474). Ancillary summary proceedings. The commissioner in his sole discretion may institute proceedings pursuant to sections 38a-911 to 38a-913, inclusive, at the request of the commissioner or other appropriate insurance official of the domiciliary…

Sec. 38a-957. (Formerly Sec. 38-475). Claims of nonresidents against insurers domiciled in this state. (a) In a liquidation proceeding begun in this state against an insurer domiciled in this state, claimants residing in foreign countries or in states not reciprocal states shall …

Sec. 38a-958. (Formerly Sec. 38-476). Commissioner as ancillary receiver for insurers not domiciled in this state. (a) Promptly after the appointment of the commissioner as ancillary receiver for an insurer not domiciled in this state, the commissioner shall determine whether the…

Sec. 38a-959. (Formerly Sec. 38-477). Attachment, garnishment or levy of execution not to be commenced. During the pendency in this or any other state of a liquidation proceeding, whether called by that name or not, no action or proceeding in the nature of an attachment, garnishm…

Sec. 38a-960. (Formerly Sec. 38-478). Interstate priorities. (a) In a liquidation proceeding in this state involving one or more reciprocal states, the order of distribution of the domiciliary state shall control as to all claims of residents of this and reciprocal states. All cl…

Sec. 38a-961. (Formerly Sec. 38-479). Subordination of claims for noncooperation. If an ancillary receiver in another state or foreign country, whether called by that name or not, fails to transfer to the domiciliary liquidator in this state any assets within his control other th…

Sec. 38a-962. Definitions. As used in sections 38a-129, 38a-140 and 38a-962 to 38a-962j, inclusive: (1) “Insurer” means and includes every person engaged as indemnitor, surety or contractor in the business of entering into contracts of insurance or of annuities as limited to: (A)…

Sec. 38a-962a. Applicability. The provisions of sections 38a-129, 38a-140 and 38a-962 to 38a-962j, inclusive, shall apply to: (1) All domestic insurers, and (2) any other insurer doing business in this state whose state of domicile has asked the commissioner to apply the provisio…

Sec. 38a-962b. Administrative supervision by the commissioner. (a) An insurer may be subject to administrative supervision by the commissioner if upon examination or at any other time it appears in the commissioner's discretion that: (1) The insurer's condition renders the contin…

Sec. 38a-962c. Confidentiality of proceedings, hearings, records, reports and correspondence. Exception. (a) Notwithstanding any other provision of law and except as set forth in this section, proceedings, hearings, notices, correspondence, reports, records and other information …

Sec. 38a-962d. Prohibited activities during supervision. Prior approval. During the period of supervision, the commissioner or his designated appointees shall serve as the administrative supervisor. The commissioner may determine that the insurer may not do any of the following d…

Sec. 38a-962e. Contested action. Appeal. During the period of supervision the insurer may contest any action taken or proposed to be taken by the supervisor specifying the manner wherein the action being complained of would not result in improving the condition of the insurer. De…

Sec. 38a-962f. Judicial or other delinquency proceedings. Nothing contained in sections 38a-129, 38a-140 and 38a-962 to 38a-962j, inclusive, shall preclude the commissioner from initiating judicial proceedings to place an insurer in conservation, rehabilitation or liquidation pro…

Sec. 38a-962g. Regulations. The commissioner may adopt regulations in accordance with the provisions of chapter 54 to implement sections 38a-129, 38a-140 and 38a-962 to 38a-962j, inclusive. (P.A. 92-93, S. 39.)

Sec. 38a-962h. Supervision proceeding: Contact with commissioner allowed. Notwithstanding any other provision of law, the commissioner may meet with a supervisor appointed under sections 38a-129, 38a-140 and 38a-962 to 38a-962j, inclusive, and with the attorney or other represent…

Sec. 38a-962i. Immunity from liability. There shall be no liability on the part of, and no cause of action shall arise against, the commissioner or the department or its employees or agents for any action taken by them in the performance of their powers and duties under sections …

Sec. 38a-962j. Right of recovery. (a) If an order for liquidation of a domestic insurance company has been entered, the receiver appointed under such order shall have a right to recover on behalf of the insurance company, (1) from any parent corporation or holding company or pers…

Secs. 38a-963 to 38a-965. Reserved for future use. PART II TERMINATION OF DOMESTIC LIFE INSURANCE COMPANIES

Secs. 38a-966 to 38a-970. (Formerly Secs. 38-136 to 38-140). Assets to vest in commissioner on repeal of charter. Powers and duties of commissioner. Limitation of time for presentation of claims. Valuation of policies in force. Application of assets. Sections 38a-966 to 38a-970, …