Senate Bill 132
150th General Assembly (Present)
Becomes effective upon date of signature of the Governor or upon date specified
AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO THE LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT.
This Act updates the Delaware Life and Health Insurance Guaranty Association Act (Delaware Act) to conform Delaware law to revisions made to the National Association of Insurance Commissioners’ (NAIC) Life and Health Insurance Guaranty Association Model Act (Model Act). The Model Act provides a framework for protecting policy or contract owners, insureds, beneficiaries, annuitants, payees, and assignees against losses due to the insolvency or impairment of an insurer. This Act revises the methodology for assessments relating to long-term care insurance written by an impaired or insolvent insurer and includes managed care organizations and health maintenance organizations within the scope of the Delaware Act to more fairly distribute the cost of long-term care insurance insolvencies among insurers writing life, health, annuity, managed care organization, and health maintenance organization products and to ensure sufficient assessment capacity for all insolvencies. Finally, this Act makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.