SB 0466 Interstate Insurance Receivership Compact
Committee:INSULR Number:S1646.01I
Last Action:04/12/95 - Hearing Scheduled but not heard S Ins & Housing Comm
Effective Date:August 28, 1995
All Actions | Senate Home Page | List of 1995 Senate Bills
Current Bill Summary

SB 466 - This act creates the "Interstate Insurance Receivership Commission". The Commission shall oversee insurance insolvency receivers in the compacting states. Its rules shall have the force of statutory law, and its procedures shall be binding upon the compacting states. The Commission may act as a receiver at the request of a compacting state when grounds for receivership exist.

The powers of the Commission are specified, including acting as deputy receiver, monitoring guarantee associations, bringing legal proceedings, purchasing insurance and bonds, enforcing compliance with rules and providing for dispute resolution. Each compacting state shall have one member on the Commission, entitled to one vote each. The Commission shall retain an executive director who shall hire a staff. Additional provisions concern immunity, indemnification, meetings, records, rulemaking, oversight and dispute resolution and receivership functions.

The Commission shall assess each compacting state and its insurers. Seventy-five percent of the costs are allocated to insurers, and twenty-five percent are allocated to the states.