Sec. 38a-934. (Formerly Sec. 38-452.) Reinsurer's liability.
Sec. 38a-934. (Formerly Sec. 38-452.) Reinsurer's liability. The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency
proceedings, regardless of any provision in the reinsurance contract or other agreement.
Payment made directly to an insured or other creditor shall not diminish the reinsurer's
obligation to the insurer's estate except when (1) the reinsurance contract provides for
payment of the reinsurance proceeds to another payee, (2) the underlying insurance
policy, including any amendments or endorsements, provides for the assumption of the
policy obligations by the reinsurer, or (3) there has been a novation of the underlying
policy obligations and an assumption of those obligations by the reinsurer and the proceeds are payable to another payee.
(P.A. 79-382, S. 32 P.A. 92-93, S. 23; P.A. 98-214, S. 5.)
History: Sec. 38-452 transferred to Sec. 38a-934 in 1991; P.A. 92-93 made technical corrections for statutory consistency; P.A. 98-214 deleted exception re reinsurer's obligation for when the reinsurance contract provided direct coverage
of a named insured and payment discharged the obligation and added new exceptions by creating new Subdiv. (1) re
contract which provides for payment to another payee, new Subdiv. (2) re assumption of policy obligations in underlying
policy, and new Subdiv. (3) re novation and assumption of obligations by reinsurer with proceeds payable to another payee.