Connecticut General Statutes
Chapter 704c - Insurers Rehabilitation and Liquidation Act and Termination of Domestic Life Insurance Companies
Section 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.

Structure Connecticut General Statutes

Connecticut General Statutes

Title 38a - Insurance

Chapter 704c - Insurers Rehabilitation and Liquidation Act and Termination of Domestic Life Insurance Companies

Section 38a-903. (Formerly Sec. 38-421). - Short title: Insurers Rehabilitation and Liquidation Act. Interpretation. Applicability.

Section 38a-904. (Formerly Sec. 38-422). - Application of provisions.

Section 38a-905. (Formerly Sec. 38-423). - Definitions.

Section 38a-906. (Formerly Sec. 38-424). - Jurisdiction and venue.

Section 38a-907. (Formerly Sec. 38-425). - Injunctions, orders and stays.

Section 38a-908. (Formerly Sec. 38-426). - Cooperation of officers, owners and employees. Penalties.

Section 38a-909. (Formerly Sec. 38-427). - Persons afforded protection. Official immunity. Segregation of funds. Bonds.

Section 38a-910. (Formerly Sec. 38-428). - Continuation of delinquency proceedings.

Section 38a-911. (Formerly Sec. 38-429). - Delinquency proceeding: Limitations and conditions.

Section 38a-912. (Formerly Sec. 38-430). - Seizure order by court.

Section 38a-913. (Formerly Sec. 38-431). - Confidentiality of proceedings.

Section 38a-913a. - Records of delinquent insurer. Use as evidence. Applicability of Freedom of Information Act. Costs of producing records.

Section 38a-914. (Formerly Sec. 38-432). - Grounds for rehabilitation.

Section 38a-915. (Formerly Sec. 38-433). - Rehabilitation orders. Appointment of judge to supervise rehabilitation. Accounting. Appeals.

Section 38a-916. (Formerly Sec. 38-434). - Powers and duties of the rehabilitator. Advisory committees.

Section 38a-917. (Formerly Sec. 38-435). - Actions by and against rehabilitator.

Section 38a-918. (Formerly Sec. 38-436). - Order of liquidation. Termination of rehabilitation.

Section 38a-919. (Formerly Sec. 38-437). - Grounds for liquidation.

Section 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.

Section 38a-921. (Formerly Sec. 38-439). - Continuance of coverage. Cancellation of bond or surety undertaking.

Section 38a-922. (Formerly Sec. 38-440). - Dissolution of insurer.

Section 38a-923. (Formerly Sec. 38-441). - Powers of liquidator.

Section 38a-924. (Formerly Sec. 38-442). - Notice to creditors and others. Requirements. Exceptions.

Section 38a-925. (Formerly Sec. 38-443). - Duties of agents. Penalty.

Section 38a-926. (Formerly Sec. 38-444). - Actions by and against liquidator.

Section 38a-927. (Formerly Sec. 38-445). - List of assets.

Section 38a-928. (Formerly Sec. 38-446). - Fraudulent transfers prior to petition.

Section 38a-929. (Formerly Sec. 38-447). - Fraudulent transfer after petition.

Section 38a-930. (Formerly Sec. 38-448). - Voidable preferences and liens. Exceptions.

Section 38a-931. (Formerly Sec. 38-449). - Claims of holders of void or voidable rights.

Section 38a-932. (Formerly Sec. 38-450). - Set-offs and counterclaims. Accounting statements.

Section 38a-933. (Formerly Sec. 38-451). - Assessments.

Section 38a-933a. - Amounts recoverable. Affiliate liability. Timing of proceedings.

Section 38a-934. (Formerly Sec. 38-452.) - Reinsurer's liability.

Section 38a-935. (Formerly Sec. 38-453). - Recovery of premiums owed. Penalty. Appeals.

Section 38a-936. (Formerly Sec. 38-454). - Liquidator's proposal to distribute assets.

Section 38a-937. (Formerly Sec. 38-455). - Filing of claims.

Section 38a-938. (Formerly Sec. 38-456). - Proof of claim.

Section 38a-939. (Formerly Sec. 38-457). - Special claims.

Section 38a-940. (Formerly Sec. 38-458). - Special provisions for third party claims. Liquidator recommendations. Provisions not applicable to claims covered by guaranty association.

Section 38a-941. (Formerly Sec. 38-459). - Disputed claims. Hearings. Procedure.

Section 38a-942. (Formerly Sec. 38-460). - Claims of surety.

Section 38a-943. (Formerly Sec. 38-461). - Secured creditor's claims.

Section 38a-944. (Formerly Sec. 38-462). - Priority of distribution of claims.

Section 38a-944a. - Additional rights. Netting agreements. Qualified financial contracts. Security arrangements.

Section 38a-945. (Formerly Sec. 38-463). - Liquidator's recommendations to the court.

Section 38a-946. (Formerly Sec. 38-464). - Distribution of assets.

Section 38a-947. (Formerly Sec. 38-465). - Unclaimed and withheld funds.

Section 38a-948. (Formerly Sec. 38-466). - Termination of proceedings.

Section 38a-949. (Formerly Sec. 38-467). - Reopening liquidation.

Section 38a-950. (Formerly Sec. 38-468). - Disposition of records during and after termination of liquidation.

Section 38a-951. (Formerly Sec. 38-469). - External audit of the receiver's books.

Section 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.

Section 38a-953. (Formerly Sec. 38-471). - Liquidation of property of foreign or alien insurers found in this state.

Section 38a-954. (Formerly Sec. 38-472). - Domiciliary liquidators in other states.

Section 38a-955. (Formerly Sec. 38-473). - Ancillary formal proceedings.

Section 38a-956. (Formerly Sec. 38-474). - Ancillary summary proceedings.

Section 38a-957. (Formerly Sec. 38-475). - Claims of nonresidents against insurers domiciled in this state.

Section 38a-958. (Formerly Sec. 38-476). - Commissioner as ancillary receiver for insurers not domiciled in this state.

Section 38a-959. (Formerly Sec. 38-477). - Attachment, garnishment or levy of execution not to be commenced.

Section 38a-960. (Formerly Sec. 38-478). - Interstate priorities.

Section 38a-961. (Formerly Sec. 38-479). - Subordination of claims for noncooperation.

Section 38a-962. - Definitions.

Section 38a-962a. - Applicability.

Section 38a-962b. - Administrative supervision by the commissioner.

Section 38a-962c. - Confidentiality of proceedings, hearings, records, reports and correspondence. Exception.

Section 38a-962d. - Prohibited activities during supervision. Prior approval.

Section 38a-962e. - Contested action. Appeal.

Section 38a-962f. - Judicial or other delinquency proceedings.

Section 38a-962g. - Regulations.

Section 38a-962h. - Supervision proceeding: Contact with commissioner allowed.

Section 38a-962i. - Immunity from liability.

Section 38a-962j. - Right of recovery.

Section 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 ass...