(a) This Articleprovides coverage for the policies and contracts specified in subsection (b) ofthis section:
(1) To persons otherthan persons specified in subdivisions (3) and (4) of this subsection who,regardless of where they reside (except for nonresident certificate holdersunder group policies), are the beneficiaries, assignees, or payees of thepersons covered under subdivision (2) of this subsection;
(2) To persons otherthan persons specified in subdivisions (3) and (4) of this subsection who areowners or certificate holders under the policies, or in the case of unallocatedannuity contracts to the persons who are the contract holders, and who areresidents of this State, or who are not residents of this State, but only underall of the following conditions: (i) the insurers that issued the policies aredomiciled in this State; (ii) the insurers never held a license in the statesin which the persons reside; (iii) the states have associations similar to the associationcreated by this Article; and (iv) the persons are not eligible for coverage bythe associations;
(3) To persons who arepayees (or beneficiaries of payees if the payees are deceased) under structuredsettlement annuities if the payees are residents of this State, regardless ofwhere the contract owners of the structured settlement annuities reside; and
(4) To persons who arepayees (or beneficiaries of payees if the payees are deceased) under structuredsettlement annuities if the payees are not residents of this State, but only ifall of the following conditions are met:
a. The contract ownersof the structured settlement annuities are residents of this State or, if notresidents of this State, (i) the insurers that issued the structured settlementannuities are domiciled in this State and (ii) the state in which the contractowners reside has an association similar to the Association created by thisArticle; and
b. Neither the payees(or beneficiaries of payees if the payees are deceased) nor the contract ownersof the structured settlement annuities are eligible for coverage by anassociation of the state in which the payees or contract owners reside.
(b) This Articleprovides coverage to the persons specified in subsection (a) of this section fordirect, nongroup life, health, annuity, and supplemental policies, forcertificates under direct group policies and contracts, and for unallocatedannuity contracts issued by member insurers, except as limited by this Article.Annuity contracts and certificates under group annuity contracts includeguaranteed investment contracts, deposit administration contracts, unallocatedfunding agreements, allocated funding agreements, structured settlementagreements, lottery contracts, and any immediate or deferred annuity contracts.
(c) This Article doesnot provide coverage for:
(1) Any part of a policynot guaranteed by the insurer, or under which the risk is borne by thepolicyholder;
(2) Any policy orcontract of reinsurance, unless assumption certificates have been issued;
(3) Any part of a policyto the extent that the rate of interest on which it is based:
a. Averaged over theperiod of four years before the date on which the Association becomes obligatedwith respect to the policy, exceeds a rate of interest determined bysubtracting two percentage points from Moody's Corporate Bond Yield Averageaveraged for that same four‑year period or for a lesser period if thepolicy was issued less than four years before the Association became obligated;and
b. On and after thedate on which the Association becomes obligated with respect to the policy,exceeds the rate of interest determined by subtracting three percentage pointsfrom Moody's Corporate Bond Yield Average as most recently available;
(4) Any plan or programof an employer, association, or similar entity to provide life, health, orannuity benefits to its employees or members to the extent that the plan orprogram is self‑funded or uninsured, including benefits payable by anemployer, association, or similar entity under:
a. A multiple employerwelfare arrangement as defined in section 514 of the Employee Retirement IncomeSecurity Act of 1974, as amended;
b. A minimum premiumgroup insurance plan;
c. A stop‑lossgroup insurance plan; or
d. An administrativeservices only contract;
(5) Any part of a policyto the extent that it provides dividends or experience‑rating credits, orprovides that any fees or allowances be paid to any person, including thepolicyholder, in connection with the service to or administration of thepolicy;
(6) Any policy issued inthis State by a member insurer at a time when it was not licensed to issue thepolicy in this State;
(7) Any unallocatedannuity contract issued to an employee benefit plan protected under the federalPension Benefit Guaranty Corporation; and
(8) Any part of anyunallocated annuity contract that is not issued to or in connection with aspecific employee, union, or association of natural persons benefit plan or agovernment lottery.
(d) The benefits forwhich the Association is liable do not, in any event, exceed the lesser of:
(1) The contractualobligations for which the insurer is liable or would have been liable if itwere not a delinquent insurer; or
(2) With respect to anyone individual, regardless of the number of policies, three hundred thousanddollars ($300,000) for all benefits, including cash values; or
(3) With respect to eachindividual participating in a governmental retirement plan established undersection 401, 403(b), or 457 of the Internal Revenue Code covered by anunallocated annuity contract, or the beneficiaries of each individual ifdeceased, in the aggregate, three hundred thousand dollars ($300,000) inpresent value annuity benefits, including net cash surrender and net cashwithdrawal values; or
(4) With respect to anyone contract holder covered by any unallocated annuity contract not included insubdivision (3) of this subsection, five million dollars ($5,000,000) inbenefits, regardless of the number of such contracts held by that contractholder; or
(5) With respect to anyone contract holder of a structured settlement annuity, one million dollars($1,000,000) for all benefits, including cash values.
(e) In no event is theAssociation liable to expend more than five hundred thousand dollars ($500,000)in the aggregate with respect to any one individual under this section. Thissubsection does not apply to structured settlement annuities. (1991, c. 681, s. 56; c.720, s. 93; 1993, c. 452, s. 61; 2009‑448, ss. 2, 3, 4.)
(a) This Articleprovides coverage for the policies and contracts specified in subsection (b) ofthis section:
(1) To persons otherthan persons specified in subdivisions (3) and (4) of this subsection who,regardless of where they reside (except for nonresident certificate holdersunder group policies), are the beneficiaries, assignees, or payees of thepersons covered under subdivision (2) of this subsection;
(2) To persons otherthan persons specified in subdivisions (3) and (4) of this subsection who areowners or certificate holders under the policies, or in the case of unallocatedannuity contracts to the persons who are the contract holders, and who areresidents of this State, or who are not residents of this State, but only underall of the following conditions: (i) the insurers that issued the policies aredomiciled in this State; (ii) the insurers never held a license in the statesin which the persons reside; (iii) the states have associations similar to the associationcreated by this Article; and (iv) the persons are not eligible for coverage bythe associations;
(3) To persons who arepayees (or beneficiaries of payees if the payees are deceased) under structuredsettlement annuities if the payees are residents of this State, regardless ofwhere the contract owners of the structured settlement annuities reside; and
(4) To persons who arepayees (or beneficiaries of payees if the payees are deceased) under structuredsettlement annuities if the payees are not residents of this State, but only ifall of the following conditions are met:
a. The contract ownersof the structured settlement annuities are residents of this State or, if notresidents of this State, (i) the insurers that issued the structured settlementannuities are domiciled in this State and (ii) the state in which the contractowners reside has an association similar to the Association created by thisArticle; and
b. Neither the payees(or beneficiaries of payees if the payees are deceased) nor the contract ownersof the structured settlement annuities are eligible for coverage by anassociation of the state in which the payees or contract owners reside.
(b) This Articleprovides coverage to the persons specified in subsection (a) of this section fordirect, nongroup life, health, annuity, and supplemental policies, forcertificates under direct group policies and contracts, and for unallocatedannuity contracts issued by member insurers, except as limited by this Article.Annuity contracts and certificates under group annuity contracts includeguaranteed investment contracts, deposit administration contracts, unallocatedfunding agreements, allocated funding agreements, structured settlementagreements, lottery contracts, and any immediate or deferred annuity contracts.
(c) This Article doesnot provide coverage for:
(1) Any part of a policynot guaranteed by the insurer, or under which the risk is borne by thepolicyholder;
(2) Any policy orcontract of reinsurance, unless assumption certificates have been issued;
(3) Any part of a policyto the extent that the rate of interest on which it is based:
a. Averaged over theperiod of four years before the date on which the Association becomes obligatedwith respect to the policy, exceeds a rate of interest determined bysubtracting two percentage points from Moody's Corporate Bond Yield Averageaveraged for that same four‑year period or for a lesser period if thepolicy was issued less than four years before the Association became obligated;and
b. On and after thedate on which the Association becomes obligated with respect to the policy,exceeds the rate of interest determined by subtracting three percentage pointsfrom Moody's Corporate Bond Yield Average as most recently available;
(4) Any plan or programof an employer, association, or similar entity to provide life, health, orannuity benefits to its employees or members to the extent that the plan orprogram is self‑funded or uninsured, including benefits payable by anemployer, association, or similar entity under:
a. A multiple employerwelfare arrangement as defined in section 514 of the Employee Retirement IncomeSecurity Act of 1974, as amended;
b. A minimum premiumgroup insurance plan;
c. A stop‑lossgroup insurance plan; or
d. An administrativeservices only contract;
(5) Any part of a policyto the extent that it provides dividends or experience‑rating credits, orprovides that any fees or allowances be paid to any person, including thepolicyholder, in connection with the service to or administration of thepolicy;
(6) Any policy issued inthis State by a member insurer at a time when it was not licensed to issue thepolicy in this State;
(7) Any unallocatedannuity contract issued to an employee benefit plan protected under the federalPension Benefit Guaranty Corporation; and
(8) Any part of anyunallocated annuity contract that is not issued to or in connection with aspecific employee, union, or association of natural persons benefit plan or agovernment lottery.
(d) The benefits forwhich the Association is liable do not, in any event, exceed the lesser of:
(1) The contractualobligations for which the insurer is liable or would have been liable if itwere not a delinquent insurer; or
(2) With respect to anyone individual, regardless of the number of policies, three hundred thousanddollars ($300,000) for all benefits, including cash values; or
(3) With respect to eachindividual participating in a governmental retirement plan established undersection 401, 403(b), or 457 of the Internal Revenue Code covered by anunallocated annuity contract, or the beneficiaries of each individual ifdeceased, in the aggregate, three hundred thousand dollars ($300,000) inpresent value annuity benefits, including net cash surrender and net cashwithdrawal values; or
(4) With respect to anyone contract holder covered by any unallocated annuity contract not included insubdivision (3) of this subsection, five million dollars ($5,000,000) inbenefits, regardless of the number of such contracts held by that contractholder; or
(5) With respect to anyone contract holder of a structured settlement annuity, one million dollars($1,000,000) for all benefits, including cash values.
(e) In no event is theAssociation liable to expend more than five hundred thousand dollars ($500,000)in the aggregate with respect to any one individual under this section. Thissubsection does not apply to structured settlement annuities. (1991, c. 681, s. 56; c.720, s. 93; 1993, c. 452, s. 61; 2009‑448, ss. 2, 3, 4.)
(a) This Articleprovides coverage for the policies and contracts specified in subsection (b) ofthis section:
(1) To persons otherthan persons specified in subdivisions (3) and (4) of this subsection who,regardless of where they reside (except for nonresident certificate holdersunder group policies), are the beneficiaries, assignees, or payees of thepersons covered under subdivision (2) of this subsection;
(2) To persons otherthan persons specified in subdivisions (3) and (4) of this subsection who areowners or certificate holders under the policies, or in the case of unallocatedannuity contracts to the persons who are the contract holders, and who areresidents of this State, or who are not residents of this State, but only underall of the following conditions: (i) the insurers that issued the policies aredomiciled in this State; (ii) the insurers never held a license in the statesin which the persons reside; (iii) the states have associations similar to the associationcreated by this Article; and (iv) the persons are not eligible for coverage bythe associations;
(3) To persons who arepayees (or beneficiaries of payees if the payees are deceased) under structuredsettlement annuities if the payees are residents of this State, regardless ofwhere the contract owners of the structured settlement annuities reside; and
(4) To persons who arepayees (or beneficiaries of payees if the payees are deceased) under structuredsettlement annuities if the payees are not residents of this State, but only ifall of the following conditions are met:
a. The contract ownersof the structured settlement annuities are residents of this State or, if notresidents of this State, (i) the insurers that issued the structured settlementannuities are domiciled in this State and (ii) the state in which the contractowners reside has an association similar to the Association created by thisArticle; and
b. Neither the payees(or beneficiaries of payees if the payees are deceased) nor the contract ownersof the structured settlement annuities are eligible for coverage by anassociation of the state in which the payees or contract owners reside.
(b) This Articleprovides coverage to the persons specified in subsection (a) of this section fordirect, nongroup life, health, annuity, and supplemental policies, forcertificates under direct group policies and contracts, and for unallocatedannuity contracts issued by member insurers, except as limited by this Article.Annuity contracts and certificates under group annuity contracts includeguaranteed investment contracts, deposit administration contracts, unallocatedfunding agreements, allocated funding agreements, structured settlementagreements, lottery contracts, and any immediate or deferred annuity contracts.
(c) This Article doesnot provide coverage for:
(1) Any part of a policynot guaranteed by the insurer, or under which the risk is borne by thepolicyholder;
(2) Any policy orcontract of reinsurance, unless assumption certificates have been issued;
(3) Any part of a policyto the extent that the rate of interest on which it is based:
a. Averaged over theperiod of four years before the date on which the Association becomes obligatedwith respect to the policy, exceeds a rate of interest determined bysubtracting two percentage points from Moody's Corporate Bond Yield Averageaveraged for that same four‑year period or for a lesser period if thepolicy was issued less than four years before the Association became obligated;and
b. On and after thedate on which the Association becomes obligated with respect to the policy,exceeds the rate of interest determined by subtracting three percentage pointsfrom Moody's Corporate Bond Yield Average as most recently available;
(4) Any plan or programof an employer, association, or similar entity to provide life, health, orannuity benefits to its employees or members to the extent that the plan orprogram is self‑funded or uninsured, including benefits payable by anemployer, association, or similar entity under:
a. A multiple employerwelfare arrangement as defined in section 514 of the Employee Retirement IncomeSecurity Act of 1974, as amended;
b. A minimum premiumgroup insurance plan;
c. A stop‑lossgroup insurance plan; or
d. An administrativeservices only contract;
(5) Any part of a policyto the extent that it provides dividends or experience‑rating credits, orprovides that any fees or allowances be paid to any person, including thepolicyholder, in connection with the service to or administration of thepolicy;
(6) Any policy issued inthis State by a member insurer at a time when it was not licensed to issue thepolicy in this State;
(7) Any unallocatedannuity contract issued to an employee benefit plan protected under the federalPension Benefit Guaranty Corporation; and
(8) Any part of anyunallocated annuity contract that is not issued to or in connection with aspecific employee, union, or association of natural persons benefit plan or agovernment lottery.
(d) The benefits forwhich the Association is liable do not, in any event, exceed the lesser of:
(1) The contractualobligations for which the insurer is liable or would have been liable if itwere not a delinquent insurer; or
(2) With respect to anyone individual, regardless of the number of policies, three hundred thousanddollars ($300,000) for all benefits, including cash values; or
(3) With respect to eachindividual participating in a governmental retirement plan established undersection 401, 403(b), or 457 of the Internal Revenue Code covered by anunallocated annuity contract, or the beneficiaries of each individual ifdeceased, in the aggregate, three hundred thousand dollars ($300,000) inpresent value annuity benefits, including net cash surrender and net cashwithdrawal values; or
(4) With respect to anyone contract holder covered by any unallocated annuity contract not included insubdivision (3) of this subsection, five million dollars ($5,000,000) inbenefits, regardless of the number of such contracts held by that contractholder; or
(5) With respect to anyone contract holder of a structured settlement annuity, one million dollars($1,000,000) for all benefits, including cash values.
(e) In no event is theAssociation liable to expend more than five hundred thousand dollars ($500,000)in the aggregate with respect to any one individual under this section. Thissubsection does not apply to structured settlement annuities. (1991, c. 681, s. 56; c.720, s. 93; 1993, c. 452, s. 61; 2009‑448, ss. 2, 3, 4.)
