Summary of the Committee Version of the Bill

HB 459 -- INSURANCE LIQUIDATION

CO-SPONSORS:  Liese, Luetkemeyer

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Insurance by a vote of 14 to 0.

This bill extends to December 31, 2005, the sunset clause on a
provision regarding the liquidation of insurance companies.
That law expired on December 31, 2000.  The provision allows an
estimation of contingent liabilities to be used to fix
creditors' claims during the liquidation process.  The bill also
requires a reinsurer's payments to be made directly to the
liquidator, except where the contract specifically provides for
another payee or where another insurer assumes the ceding
insurer's policy obligations.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that this clean-up language is
patterned after a uniform law developed by the National
Association of Insurance Commissioners.

Testifying for the bill were Representative Liese; and
Reinsurance Association of America.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst


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Last Updated November 26, 2001 at 11:44 am