S1195B1762A06432 MSP:JSL 06/24/20 #90 A06432
AMENDMENTS TO SENATE BILL NO. 1195
Sponsor: SENATOR SCAVELLO
Printer's No. 1762
Amend Bill, page 1, line 11, by inserting after "laws,""
in general provisions relating to insurance companies,
associations and exchanges, further providing for Reinsurance
Credits and providing for credit for reinsurance and
reciprocal jurisdictions;
Amend Bill, page 1, lines 25 through 27, by striking out all
of said lines and inserting
Section 1. Section 319.1(a), (b) and (f) of the act of May
17, 1921 (P.L.682, No.284), known as The Insurance Company Law
of 1921, are amended and the section is amended by adding
subsections to read:
Section 319.1. Reinsurance Credits.--[(a) Unless an
unlicensed reinsurer is qualified or certified to accept
reinsurance from insurers licensed in this Commonwealth, no
credit shall be allowed as an admitted asset or as a reduction
of liability relative to risks ceded by such licensed insurers.
Qualified or certified reinsurers are those meeting the
conditions for reinsurers specified by the commissioner, in his
discretion, and included on a list of qualified or certified
reinsurers published and periodically reviewed by said
commissioner.]
(a.1) A domestic ceding insurer may take a credit for
reinsurance as either an asset or reduction from liability on
account of the reinsurance ceded if it meets the requirements
specified in this section.
(a.2) The following types of reinsurance arrangements are
permissible:
(1) Reinsurance ceded to an assuming insurer that is
licensed to transact insurance or reinsurance in this
Commonwealth in accordance with section 319(b).
(2) Reinsurance ceded to an insurer meeting the conditions
specified by the commissioner, in the commissioner's discretion,
and included on a list of qualified or certified reinsurers
published and periodically reviewed by the commissioner
including when the reinsurance is ceded to the following:
(i) An assuming foreign or alien insurer or group of
incorporated alien insurers under common administration that has
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deemed to be a qualified reinsurer by the commissioner in
accordance with the requirements of 31 Pa. Code Ch. 161
(relating to requirements for qualified and certified
reinsurers).
(ii) An assuming insurer that has been certified by the
commissioner as a reinsurer in this Commonwealth in accordance
with the requirements of 31 Pa. Code Ch. 161, except that as of
the effective date of this subsection, the following shall
apply:
(A) Certified reinsurers not domiciled in the United States
must submit the most recent audited financial statements,
regulatory filings and actuarial opinions, as filed with the
certified reinsurer's supervisor, with a translation into
English, but shall not need to submit audited financial
statements on a United States generally accepted accounting
principles or international financial reporting standards
basis.
(B) Upon the initial application for certification pursuant
to 31 Pa. Code. Ch. 161, the commissioner shall consider audited
financial statements for the last two years filed with the
certified reinsurer's supervisor.
(3) Reinsurance ceded to an assuming insurer meeting the
requirements of section 319.3.
(4) Reinsurance ceded to an assuming insurer that is
domiciled in, or for a United States branch of an alien assuming
insurer, is entered through a state that employs standards
regarding credit for reinsurance substantially similar to those
applicable under the law of this Commonwealth and the assuming
insurer or United States branch of an alien assuming insurer
meets both of the following:
(i) Maintains a surplus as regards policyholders in an
amount not less than $20,000,000, except with regard to
reinsurance ceded and assumed pursuant to pooling arrangements
among insurers in the same holding company system.
(ii) Submits to the authority of the commissioner to examine
its books and records.
(b) A reduction from liability for the reinsurance ceded by
a domestic insurer to an assuming insurer [which is not a
qualified or certified reinsurer in accordance with this
section] not falling within one of the categories specified
under subsection (a.2) shall be allowed in an amount not
exceeding the liabilities carried by the ceding insurer and such
reduction shall be in the amount of funds held by or on behalf
of the ceding insurer, including funds held in trust for the
ceding insurer, under a reinsurance contract with such assuming
insurer as security for the payment of obligations thereunder,
if such security is held in the United States subject to
withdrawal solely by and under the exclusive control of the
ceding insurer or, in the case of a trust, held in a qualified
United States financial institution, as defined in subsection
(g)(2). This security may be in the form of:
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(1) Cash.
(2) Securities listed by a securities valuation office of a
national association of insurance commissioners or any successor
thereto, including those exempted from filing under the Purposes
and Procedures Manual of the Securities Valuation Office of the
National Association of Insurance Commissioners, and qualifying
as admitted assets.
(3) (i) Clean, irrevocable, unconditional and evergreen
letters of credit issued or confirmed by a qualified United
States financial institution, as defined in subsection (g)(1),
effective no later than the thirty-first day of December in
respect of the year for which filing is being made and in the
possession of the ceding insurer on or before the filing date of
its annual statement.
(ii) Letters of credit meeting applicable standards of
issuer acceptability as of the dates of their issuance or
confirmation shall, notwithstanding the issuing or confirming
institution's subsequent failure to meet applicable standards of
issuer acceptability, continue to be acceptable as security
until their expiration, extension, renewal, modification or
amendment, whichever first occurs.
(4) Funds or letters of credit provided by a noninsurer
parent corporation of the ceding insurer, in lieu of the funds
to be withheld by the ceding insurer under a reinsurance
contract with such assuming insurer as security for payment of
obligations thereunder, if the following requirements are met:
(i) The funds or letters of credit are held subject to
withdrawal by and under the control of the ceding insurer.
(ii) The type, amount and form of the funds or letters of
credit receive the prior approval of the Insurance Commissioner.
(5) Any other form of security acceptable to the Insurance
Commissioner.
* * *
(f) The following shall apply:
(1) Notwithstanding the provisions of this section, the
Insurance Department may promulgate one or more regulations to
limit, prohibit or authorize the credit which a domestic insurer
may take as an admitted asset or as a reduction in liability
with respect to reinsurance ceded on any financial statements
filed with the Insurance Department.
(2) In addition to and notwithstanding the commissioner's
regulatory authority under paragraph (1), the commissioner may
promulgate regulations as provided under this paragraph.
(i) A regulation promulgated under this paragraph shall
only apply to reinsurance relating to the following:
(A) Life insurance policies with guaranteed nonlevel gross
premiums or guaranteed nonlevel benefits.
(B) Universal life insurance policies with provisions
resulting in the ability of a policyholder to keep a policy in
force over a secondary guarantee period.
(C) Variable annuities with guaranteed death or living
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benefits.
(D) Long-term care insurance policies.
(E) Other life and health insurance and annuity products
related to credit for reinsurance.
(ii) A regulation promulgated under this paragraph may apply
to treaties entered into after the effective date of this
paragraph containing:
(A) policies issued after December 31, 2014;
(B) policies issued prior to January 1, 2015, if risk
pertaining to the policies is ceded in connection with the
treaty, in whole or in part, after December 31, 2014 ; or
(C) policies that meet the requirements of both clauses (A)
and (B).
(iii) A regulation promulgated under this paragraph may not
apply to cessions to an assuming insurer if the assuming insurer
meets one of the following:
(A) Meets the requirements under section 319.3.
(B) Is certified in this Commonwealth.
(C) The commissioner has determined that the assuming
insurer maintains at least $250,000,000 (two hundred and fifty
million dollars) in capital and surplus and is either of the
following:
(I) licensed in at least 26 states; or
(II) licensed in at least ten states and licensed or
accredited in a total of at least 35 states.
* * *
Section 1.1. The act is amended by adding a section to read:
Section 319.3. Credit For Reinsurance And Reciprocal
Jurisdictions.--(a) The commissioner shall allow credit for
reinsurance ceded by a domestic insurer to an assuming insurer
that is licensed to write reinsurance by, and has its head
office or is domiciled in, a reciprocal jurisdiction that meets
the requirements of this section.
(b) (Reserved).
(c) Credit shall be allowed if reinsurance is ceded from an
insurer domiciled in this Commonwealth to an assuming insurer
meeting each of the following conditions:
(1) The assuming insurer must be licensed to transact
reinsurance by and have its head office or be domiciled in a
reciprocal jurisdiction.
(2) The assuming insurer must have and maintain on an
ongoing basis minimum capital and surplus, or its equivalent,
calculated on at least an annual basis as of the preceding
December 31 or at the annual date otherwise statutorily reported
to the reciprocal jurisdiction, and confirmed as provided under
paragraph (7) according to the methodology of its domiciliary
jurisdiction in the following amounts, which may be modified by
the commissioner by regulation:
(i) at least $250,000,000; or
(ii) if the assuming insurer is an association, including
incorporated and individual unincorporated underwriters:
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(A) minimum capital and surplus equivalents, net of
liabilities, or own funds of the equivalent of at least
$250,000,000; and
(B) a central fund containing a balance of the equivalent of
at least $250,000,000.
(3) The assuming insurer must have and maintain, on an
ongoing basis, a minimum solvency or capital ratio, as follows:
(i) if the assuming insurer has its head office or is
domiciled in a reciprocal jurisdiction as provided under
paragraph (1) of the definition of "reciprocal jurisdiction,"
the ratio specified in the applicable covered agreement;
(ii) if the assuming insurer is domiciled in a reciprocal
jurisdiction under paragraph (2) of the definition of
"reciprocal jurisdiction", a risk-based capital ratio of 300% of
the authorized control level calculated in accordance with the
formula developed by the National Association of Insurance
Commissioners; or
(iii) if the assuming insurer is domiciled in a reciprocal
jurisdiction under paragraph (3) of the definition of
"reciprocal jurisdiction", after consultation with the
reciprocal jurisdiction and considering any recommendations
published through the National Association of Insurance
Commissioners committee process, the solvency or capital ratio
as the commissioner determines to be an effective measure of
solvency.
(4) The assuming insurer must agree to and provide adequate
assurance, by executing a form as prescribed by the
commissioner, of its agreement to the following:
(i) The assuming insurer must agree to provide prompt
written notice and explanation to the commissioner if it falls
below the minimum requirements under paragraphs (2) and (3) , or
if any regulatory action is taken against it for serious
noncompliance with law.
(ii) The assuming insurer must consent in writing to the
jurisdiction of the courts of this Commonwealth and to the
appointment of the commissioner as agent for service of process.
(A) The commissioner may require that the consent be
provided and included in each reinsurance agreement under the
commissioner's jurisdiction.
(B) Nothing under this paragraph shall limit or alter the
capacity of a party to a reinsurance agreement to agree to
alternative dispute resolution mechanisms, except to the extent
the agreements are unenforceable under applicable insolvency or
delinquency laws.
(iii) The assuming insurer must consent in writing to pay
each final judgment, wherever enforcement is sought, obtained by
a ceding insurer, that have been declared unenforceable in the
territory where the judgment was obtained.
(iv) Each reinsurance agreement must include a provision
requiring the assuming insurer to provide security in an amount
equal to one hundred percent (100%) of the assuming insurer's
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liabilities attributable to reinsurance ceded pursuant to the
agreement if the assuming insurer resists enforcement of a final
judgment that is enforceable under the law of the jurisdiction
in which it was obtained or a properly enforceable arbitration
award, whether obtained by the ceding insurer or by its legal
successor on behalf of this estate, if applicable.
(v) The assuming insurer must:
(A) Confirm that it is not presently participating in a
solvent scheme of arrangement, which involves this
Commonwealth's ceding insurers.
(B) Agree to notify the ceding insurer and the commissioner
if it enters into a solvent scheme of arrangement.
(C) Agree to provide security to the ceding insurer in an
amount equal to 100% of the assuming insurer's liabilities to
the ceding insurer if the assuming insurer enters into a solvent
scheme of arrangement.
(D) Agree to provide security in a form consistent with all
of the following:
(I) The provisions of section 319.1(a.2)(2) applicable to
certified reinsurers.
(II) Section 319.1(b).
(III) 31 Pa.Code Ch. 163 (relating to requirements for funds
held as security for the payment of obligations of unlicensed,
unqualified reinsurers).
(E) For purposes of this subparagraph, the term "solvent
scheme of arrangement" means a foreign or alien statutory or
regulatory compromise procedure subject to requisite majority
creditor approval and judicial sanction in the assuming
insurer's home jurisdiction either to finally commute
liabilities of duly noticed class members or creditors of a
solvent debtor on a final basis, and which may be subject to
jurisdictional recognition and enforcement of the arrangement by
a governing authority outside the ceding insurer's home
jurisdiction.
(vi) An assuming insurer shall agree in writing to meet the
applicable information filing requirements of paragraph (5) of
this subsection.
(5) An assuming insurer or its legal successor shall
provide, if requested by the commissioner, on behalf of itself
and any legal predecessors, the following documentation to the
commissioner:
(i) for the two years preceding entry into the reinsurance
agreement and on an annual basis thereafter, the assuming
insurer's annual audited financial statements, in accordance
with the law of the jurisdiction of its head office or
domiciliary jurisdiction, as applicable, including the external
audit report;
(ii) for the two years preceding entry into the reinsurance
agreement, the solvency and financial condition report or
actuarial opinion, if filed with the assuming insurer's
supervisor;
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(iii) prior to entry into the reinsurance agreement and not
more often than semi-annually thereafter, an updated list of
each disputed and overdue reinsurance claims outstanding for at
least 90 days, regarding reinsurance assumed from ceding
insurers domiciled in the United States; and
(iv) prior to entry into the reinsurance agreement and not
more often than semi-annually thereafter, information regarding
the assuming insurer's assumed reinsurance by ceding insurer,
ceded reinsurance by the assuming insurer and reinsurance
recoverable on paid and unpaid losses by the assuming insurer to
allow for the evaluation of the criteria under paragraph (6).
(6) The assuming insurer must maintain a practice of prompt
payment of claims under reinsurance agreements. The lack of
prompt payment shall be evidenced by any of the following
criteria:
(i) More than 15% of the reinsurance recoverables from the
assuming insurer are overdue and in dispute as reported to the
commissioner.
(ii) More than 15% of the assuming insurer's reinsurance
recoverables on paid losses are at least 90 days overdue, are
not in dispute and exceed $100,000 for each ceding insurer or as
otherwise specified in a covered agreement.
(iii) The aggregate amount of reinsurance recoverable on
paid losses which are not in dispute, but are overdue by at
least 90 days, exceeds $50,000,000 or as otherwise specified in
a covered agreement.
(7) The assuming insurer's supervisor shall confirm, in
writing, to the commissioner on an annual basis, as of the
preceding December 31 or at the annual date otherwise
statutorily reported to the reciprocal jurisdiction that the
assuming insurer complies with the requirements under paragraphs
(2) and (3).
(8) Nothing under this subsection shall preclude an assuming
insurer from providing the commissioner with information on a
voluntary basis.
(c.1) The department shall publish the prescribed form under
subsection (c)(4) on the department's Internet website and
shall submit the form to the Legislative Reference Bureau for
publication in the Pennsylvania Bulletin.
(d) The commissioner shall timely create and publish a list
of reciprocal jurisdictions on the department's Internet website
and shall submit the list to the Legislative Reference Bureau
for publication in the Pennsylvania Bulletin. The following
shall apply:
(1) A list of reciprocal jurisdictions is published through
the National Association of Insurance Commissioners committee
process. The commissioner shall include on the list any
reciprocal jurisdiction the meets the requirements of subsection
(k)(1) and (2).
(2) The commissioner shall consider any other reciprocal
jurisdiction that is included on the list of reciprocal
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jurisdictions published through the National Association of
Insurance Commissioners committee process.
(3) The commissioner may approve a jurisdiction that does
not meet the requirements of subsection (k)(1) or (2) as
provided by law, regulation or in accordance with criteria
published through the National Association of Insurance
Commissioners committee process.
(4) The commissioner may remove a jurisdiction from the list
of reciprocal jurisdictions upon a determination that the
jurisdiction no longer meets the requirements of this section or
other law or regulation, or in accordance with a process
published through the National Association of Insurance
Commissioners committee process, except that the commissioner
may not remove a reciprocal jurisdiction that meets the
requirements of subsection (k)(1) or (2). Upon removal of a
reciprocal jurisdiction from the list, credit for reinsurance
ceded to an assuming insurer which has its home office or is
domiciled in a jurisdiction shall be allowed only if allowed
under section 319.1.
(e) The commissioner shall timely create and publish a list
of assuming insurers that have satisfied the conditions under
this section and to which cessions shall be granted credit. The
following shall apply:
(1) The commissioner shall create the list in accordance
with the following requirements:
(i) The commissioner may add an assuming insurer to the list
if an National Association of Insurance Commissioners-accredited
jurisdiction has added the assuming insurer to a list of the
assuming insurers.
(ii) The commissioner may add an assuming insurer to the
list if, upon initial eligibility, the assuming insurer submits
the information to the commissioner as required under subsection
(c)(4) and complies with any additional requirements the
commissioner may impose by regulation, except to the extent that
the the additional requirements conflict with an applicable
covered agreement.
(iii) If a National Association of Insurance Commissioners-
accredited jurisdiction has determined that the conditions under
subsection (c) have been met, the commissioner may defer to the
jurisdiction's determination and add the assuming insurer to the
list of assuming insurers to which cessions shall be granted
credit in accordance with this subsection. The commissioner may
accept financial documentation filed with another National
Association of Insurance Commissioners-accredited jurisdiction
or with the National Association of Insurance Commissioners in
satisfaction of the requirements of subsection (c).
(iv) If requesting that the commissioner defer to another
National Association of Insurance Commissioners-accredited
jurisdiction's determination, the assuming insurer shall execute
the form under subsection (c)(4) and provide additional
information required by the commissioner. A state that has
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received such a request must notify other state insurance
regulators through the National Association of Insurance
Commissioners committee process and provide the relevant
information with respect to the determination of eligibility.
(2) If the commissioner determines that an assuming insurer
no longer meets one or more of the requirements under this
section, the commissioner may revoke or suspend the eligibility
of the assuming insurer for recognition under this section.
(i) While an assuming insurer's eligibility is suspended, a
reinsurance agreement issued, amended or renewed after the
effective date of the suspension may not qualify for credit
except to the extent that the assuming insurer's obligations
under the contract are secured in accordance with section
319.1(b).
(ii) If an assuming insurer's eligibility is revoked, a
credit for reinsurance may not be granted after the effective
date of the revocation with respect to any reinsurance
agreements entered into by the assuming insurer, including
reinsurance agreements entered into prior to the date of
revocation, except to the extent that the assuming insurer's
obligations under the contract are secured in a form acceptable
to the commissioner in accordance with section 319.1(b).
(f) Before denying statement credit or imposing a
requirement to post security under section 319.1(b)(2) or
adopting an similar requirement that will have substantially the
same regulatory impact on security, the commissioner shall:
(1) Communicate with the ceding insurer, the assuming
insurer and the assuming insurer's supervisor that the assuming
insurer no longer satisfies one of the conditions listed in
subsection (c).
(2) Provide the assuming insurer with 30 days from the
initial communication to submit a plan to remedy the defect and
90 days from the initial communication to remedy the defect
except in exceptional circumstances in which a shorter period is
necessary for policyholder and consumer protection.
(3) After the expiration of the period under paragraph (2),
if the commissioner determines that no or insufficient action
was taken by the assuming insurer, the commissioner may take any
of the actions provided under this subsection.
(4) Provide a written explanation to the assuming insurer of
any of the requirements under this subsection.
(g) If subject to a legal process of rehabilitation,
liquidation or conservation, as applicable, the ceding insurer
or its representative may seek and, if determined appropriate by
the court in which the proceedings are pending, may obtain an
order requiring that the assuming insurer post security for all
outstanding ceded liabilities.
(h) Nothing under this subsection shall limit or alter the
capacity of a party to a reinsurance agreement to agree on
requirements for security or other terms in the reinsurance
agreement, except as expressly prohibited under section 319 or
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other law or regulation.
(i) Credit may be taken under this section only for
reinsurance agreements entered into, amended or renewed on or
after the effective date of this section and only with respect
to losses incurred and reserves reported on or after the later
of the date on which the assuming insurer has met all
eligibility requirements under subsection (a), and the effective
date of the new reinsurance agreement, amendment or renewal. The
following shall apply:
(1) This subsection shall not alter or impair a ceding
insurer's right to take credit for reinsurance, to the extent
that credit is not available under this subsection, as long as
the reinsurance qualifies for credit under any other provision
of section 319.1.
(2) Nothing under this subsection shall authorize an
assuming insurer to withdraw or reduce the security provided
under any reinsurance agreement except as permitted by the terms
of the agreement.
(3) Nothing under this subsection shall limit or alter the
capacity of a party to any reinsurance agreement to renegotiate
the agreement.
(j) The commissioner may promulgate regulations to carry out
the provisions of this section.
(k) For the purposes of this section, a "reciprocal
jurisdiction" means a jurisdiction, as designated by the
commissioner under subsection (d) that meets one of the
following requirements:
(1) A non-United States jurisdiction that is subject to an
in-force covered agreement with the United States, each within
its legal authority or, for a covered agreement between the
United States and European Union, is a member state of the
European Union. For purposes of this paragraph, a "covered
agreement" is an agreement entered into under 31 U.S.C. ยงยง 313
(relating to Federal Insurance Office) and 314 (relating to
covered agreements) that is currently in effect or in a period
of provisional application and addresses the elimination, under
specified conditions, of collateral requirements as a condition
for entering into any reinsurance agreement with a ceding
insurer domiciled in this Commonwealth or for allowing the
ceding insurer to recognize credit for reinsurance.
(2) A United States jurisdiction that meets the requirements
for accreditation under the National Association of Insurance
Commissioners financial standards and accreditation program.
(3) A qualified jurisdiction, as determined by the
commissioner under section 319.1(a.2)(2) which is not otherwise
described under paragraph (1) or (2) and which the commissioner
determines meets all of the following additional requirements:
(i) Provides that an insurer that has its head office or is
domiciled in the qualified jurisdiction shall receive credit for
reinsurance ceded to a United States-domiciled assuming insurer
in the same manner as credit for reinsurance is received for
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reinsurance assumed by insurers domiciled in such qualified
jurisdictions.
(ii) Does not require a United States-domiciled assuming
insurer to establish or maintain a local presence as a condition
for entering into a reinsurance agreement with any ceding
insurer subject to regulation by the non-United States
jurisdiction or as a condition to allow the ceding insurer to
recognize credit for such reinsurance.
(iii) Recognizes the United States state regulatory approach
to group supervision and group capital by providing written
confirmation by a competent regulatory authority, in the
qualified jurisdiction, that insurers and insurance groups that
are domiciled or maintain their headquarters in this
Commonwealth or another jurisdiction accredited by the National
Association of Insurance Commissioners shall be subject only to
worldwide prudential insurance group supervision including
worldwide group governance, solvency and capital and reporting,
as applicable, by the commissioner or the commissioner of the
domiciliary state and will not be subject to group supervision
at the level of worldwide parent undertaking of the insurance or
reinsurance group by the qualified jurisdiction.
(iv) Provides written confirmation by a competent regulatory
authority in the qualified jurisdiction that information
regarding insurers and their parent, subsidiary or affiliated
entities, if applicable, shall be provided to the commissioner
in accordance with a memorandum of understanding or similar
document between the commissioner and such qualified
jurisdiction, including, but not limited to, the international
association of insurance supervisors multilateral memorandum of
understanding or multilateral memoranda of understanding
coordinated by the National Association of Insurance
Commissioners.
Section 1.2. Sections 1701, 1702, 1703, 1704(a), 1705(a),
1706 and 1707 of the act are amended to read:
Amend Bill, page 6, by inserting between lines 22 and 23
"Premium or income tax." The tax imposed under Article IV or
IX of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971.
Amend Bill, page 11, line 26, by striking out "(1)" and
inserting
(a)
Amend Bill, page 11, line 28, by striking out "(2)" and
inserting
(b)
Amend Bill, page 36, line 19, by striking out "liquidation,"
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Amend Bill, page 36, line 21, by striking out the period
after "liquidation" and inserting a semicolon
Amend Bill, page 50, line 16, by striking out the comma after
"companies]"
Amend Bill, page 61, lines 18 through 27, by striking out all
of said lines and inserting
(1) The amendment or addition of sections 1701, 1702,
1703, 1704(a), 1705(a), 1706, 1707, 1708(c) introductory
paragraph, (8) and (9) and (d), 1709, 1710, 1711, 1712, 1713,
1715, 1716, 1717 and 1718 of the act shall apply with respect
to a member insurer:
(i) that on or after the effective date of this
section is placed under an order of liquidation by a
court of competent jurisdiction with a finding of
insolvency; or
(ii) for which the association elects to exercise
its power and duties under section 1706(a) on or after
the effective date of this section.
(2) All matters relating to the insolvency or impairment
of any member insurer placed under an order of liquidation by
a court of competent jurisdiction with a finding of
insolvency before the effective date of this section, or for
which the association otherwise exercises its powers and
duties under section 1706(a) or (b) before the effective date
of this section, including past, present and future
assessments and credits, shall be governed by the provisions
of Article XVII in effect before the effective date of this
section.
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See A06432 in
the context
of SB1195