CT HB05232

Creates new authority for the Insurance Commissioner to petition Hartford Superior Court to rehabilitate or liquidate domestic insurers designated as covered financial companies under the Dodd-Frank Act, effective October 1, 2016.

Allows the court to grant rehabilitation or liquidation orders within 24 hours of petition filing, with the order automatically deemed granted if the court does not rule within that timeframe.

Prohibits stays or injunctions pending appeal on rehabilitation or liquidation orders issued under this section.

Modifies preference avoidance provisions in insurance liquidations to exclude reinsurance agreement commutations approved by the commissioner from being voided as preferences.

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