Sec. 38a-863. (Formerly Sec. 38-306). Creation of association. Accounts. Supervision.
Sec. 38a-863. (Formerly Sec. 38-306). Creation of association. Accounts. Supervision. (a) There is created a nonprofit legal entity to be known as the Connecticut
Life and Health Insurance Guaranty 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 under the plan of operation
established and approved under section 38a-867 and shall exercise its powers through
a board of directors established under section 38a-864. For purposes of administration
and assessment, the association shall maintain two accounts: (1) The life insurance and
annuity account which includes the following subaccounts: (A) Life insurance account;
(B) annuity account which shall include, but is not limited to, annuity contracts owned
by a governmental retirement plan, or its trustee, established under Section 401, 403(b)
or 457 of the Internal Revenue Code of 1986, or any subsequent corresponding internal
revenue code of the United States, as from time to time amended, but shall otherwise
exclude unallocated annuities; and (C) unallocated annuity account which shall exclude
contracts owned by a governmental retirement benefit plan, or its trustee, established
under Section 401, 403(b) or 457 of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time
amended; and (2) the health insurance account.
(b) The association shall come under the immediate supervision of the commissioner and shall be subject to the applicable provisions of the insurance laws of this state.
(1972, P.A. 280, S. 6; P.A. 88-76, S. 7, 10; P.A. 01-67, S. 3.)
History: P.A. 88-76 amended Subsec. (a) restructuring the accounts to be maintained by the association by reducing
their number from three to two, combining the life insurance account and the annuity account, and creating three subaccounts
under such combined account; Sec. 38-306 transferred to Sec. 38a-863 in 1991; P.A. 01-67 amended Subsec. (a)(1)(B) and
(C) to include in annuity accounts, and exclude from unallocated annuity accounts, those contracts owned by a governmental
retirement plan or its trustee established under the internal revenue code.