SB 13-032 Summary

• Expands the Life and Health Insurance Protection Association's authority to address both impaired and insolvent insurers, distinguishing between the two states and establishing procedures for each.

• Increases coverage limits for long-term care insurance to $300,000 and caps aggregate benefits for multiple nongroup life insurance policies owned by one entity at $5 million.

• Modifies assessment procedures by distinguishing between "authorized" assessments (board resolution) and "called" assessments (notice issued), with annual limits increased from 1% to 2% of average premiums.

• Grants the Association discretion to guarantee, assume, or reinsure impaired insurer policies and provide substitute coverage with alternative fixed interest rates, subject to receivership court approval.

• Establishes member insurer protest procedures for assessments, allowing protests to be filed with full payment due, with 60-day association review and appeal rights to the Commissioner.