State Codes and Statutes

Statutes > Connecticut > Title38a > Chap704c > Sec38a-903

      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 limit the powers granted the commissioner by other provisions of the law. Sections 38a-903 to 38a-961, inclusive, shall be construed to effect their purpose which is the protection of the interests of insureds, claimants, creditors and the public generally, with minimum interference with the normal prerogatives of the owners and managers of insurers, through:

      (1) Early detection of any potentially dangerous condition in an insurer and prompt application of appropriate corrective measures;

      (2) Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry;

      (3) Enhanced efficiency and economy of liquidation, through clarification of the law, to minimize legal uncertainty and litigation;

      (4) Equitable apportionment of any unavoidable loss;

      (5) Reducing the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in delinquency proceedings and by extending the scope of personal jurisdiction over debtors of the insurer outside this state;

      (6) Regulation of the business of insurance by the impact of the law relating to delinquency procedures and related substantive rules; and

      (7) Providing for a comprehensive scheme for the rehabilitation and liquidation of insurance companies and those subject to sections 38a-903 to 38a-961, inclusive, as part of the regulation of the business of insurance in the state. Proceedings in cases of insurer insolvency and delinquency are deemed an integral aspect of the business of insurance and are of vital public interest and concern.

      (P.A. 79-382, S. 1; P.A. 92-93, S. 1; P.A. 98-214, S. 1.)

      History: Sec. 38-421 transferred to Sec. 38a-903 in 1991; P.A. 92-93 added Subdivs. (1) to (7), inclusive, re early detection, improving the evaluation, enhancing efficiency and providing for equitable apportionment for the rehabilitation and liquidation of insurers; P.A. 98-214 substituted "delinquency proceedings" for "the liquidation process" in Subdiv. (5), and made changes in Subdivs. (6) and (7) re the business of insurance.