CT HB06951

Modifies the definition of preference transfers in insurer liquidations to include transfers made within one year before liquidation filing, or within two years before liquidation if a rehabilitation order was already in effect (whichever is shorter).

Adds exception allowing reinsurance agreement commutations approved by the insurance commissioner to be non-voidable as preferences, defining commutation as elimination of all present and future obligations in exchange for current consideration.

Clarifies that counterparties to netting agreements and qualified financial contracts with an insolvent insurer cannot exercise termination rights until 5 p.m. eastern standard time on the business day following receiver appointment, or after receiving notice the contract has been transferred.

Replaces reference to section 38a-18 with chapter 704c regarding the commissioner's authority to take possession of a domestic insurance company's property when violations impair its financial condition and threaten insolvency.

Repeals section 38a-18 of the general statutes, effective October 1, 2015.