§ 10-20-101. Short Title
This article shall be known and may be cited as the “Life and Health Insurance Protection Association Act”. Source: L. 91: Entire article added, p. 1256, § 1, effective July 1.
§ 10-20-102. Legislative Declaration
The general assembly finds and declares that the purpose of this article is to protect, subject to certain limitations, the persons specified in section 10-20-104 (1) against failure by member insurers in the performance of their contractual obligations under life and health insurance policies and annuity contracts specified in section 10-20-104 (2), because of the […]
§ 10-20-103. Definitions
As used in this article, unless the context otherwise requires: “Account” means any of the three accounts created pursuant to section 10-20-106. “Association” means the life and health insurance protection association as established by this article. (2.5) “Authorized assessment” or “authorized” when used in the context of assessments means a resolution passed by the board […]
§ 10-20-104. Coverage and Limitations – Coordination of Benefits
This article shall provide coverage for the policies and contracts specified in subsection (2) of this section and to persons: Who are owners of or certificate holders under such policies or contracts, other than structured settlement annuities, and who: Are residents; or Are not residents, but only under all of the following conditions: The insurer […]
§ 10-20-105. Construction
This article shall be construed to effect the purpose set forth in section 10-20-102, which shall constitute an aid and guide to interpretation. Source: L. 91: Entire article added, p. 1261, § 1, effective July 1.
§ 10-20-106. Creation of the Association
There is hereby created a private nonprofit legal entity to be known as the life and health insurance protection association. All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall perform its functions pursuant to the plan of operation […]
§ 10-20-107. Board of Directors
The board of directors of the association shall consist of not less than five nor more than nine member insurers serving terms as established in the plan of operation. The members of the board shall be selected by member insurers subject to the approval of the commissioner. Vacancies on the board shall be filled for […]
§ 10-20-108. Powers and Duties of the Association
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 approved by the commissioner: Guarantee, assume, or reinsure or cause to be guaranteed, assumed, or reinsured any or […]
§ 10-20-109. Assessments
For the purpose of providing the funds necessary to carry out the powers and duties of the association, the board shall assess each member insurer separately for each account at such time and for such amounts as the board finds necessary. Assessments shall be due not less than thirty days after prior written notice to […]
§ 10-20-110. Plan of Operation
The association shall maintain a plan of operation to assure the fair, reasonable, and equitable administration of the association. The plan of operation and any amendments thereto shall be submitted to the commissioner and be effective upon the commissioner’s written approval or after thirty days if said commissioner has not disapproved. If the association fails […]
§ 10-20-111. Powers and Duties of the Commissioner
In addition to any other powers and duties specified in this article, the commissioner shall: Upon request of the board, provide the association with a statement of the premiums in this and any other appropriate states for each member insurer; Notify the board of the existence of an impaired or insolvent insurer not later than […]
§ 10-20-112. Prevention of Insolvencies
To aid in the detection and prevention of insurer insolvencies, it shall be the duty of the commissioner: To notify the commissioners of all the other states, territories of the United States, and the District of Columbia when action is taken in any of the following matters against a member insurer: Revocation of license; Suspension […]
§ 10-20-113. Credits for Assessments Paid – Tax Offsets
A member insurer may offset against its premium tax liability to this state that amount of its class B assessment described in section 10-20-109 that was assessed for the association’s life and annuity accounts pursuant to section 10-20-106 to the extent of twenty percent of the amount of such assessment for each of the first, […]
§ 10-20-114. Miscellaneous Provisions
Nothing in this article reduces the liability for unpaid assessments of the insureds of an impaired or insolvent insurer operating under a plan with assessment liability. The association must keep records of all meetings of the board of directors to discuss the activities of the association in carrying out its powers and duties pursuant to […]
§ 10-20-115. Examination of the Association – Annual Report
The association shall be subject to examination and regulation by the commissioner. The board shall submit to the commissioner each year, not later than one hundred twenty days after the close of the fiscal year of the association, a financial report in a form approved by the commissioner, and a report of the activities of […]
§ 10-20-116. Tax Exemptions
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 and personal property. Source: L. 91: Entire article added, p. 1280, § 1, effective July 1.
§ 10-20-117. Immunity
There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, its agents, or its employees, the association, its agents, or its employees, members of the board or the commissioner or his representatives for any action or omission by them in the performance […]
§ 10-20-118. Stay of Proceedings – Reopening Default Judgments
All proceedings in which the impaired or insolvent insurer is a party in any court in this state shall be stayed for one hundred eighty days after the date an order of conservation, rehabilitation, or liquidation is final to permit proper legal action by the association on any matters germane to its powers or duties. […]
§ 10-20-119. Prohibited Advertisement of Association Article in Insurance Sales – Notice to Policyholders
No person, including an insurer, agent, or affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or […]
§ 10-20-120. Prospective Application
This article shall not apply to any insurer which is declared insolvent before July 1, 1991. Source: L. 91: Entire article added, p. 1282, § 1, effective July 1.