Bill No.:                     SF0113                                   Drafter:  LGC

LSO No.:                   13LSO-0443                         Effective Date:  7/1/2013

Enrolled Act No.:    SEA0062

Chapter No.:            CH0108

Prime Sponsor:       Senator Johnson

Catch Title:              Insurance Guaranty Association Act-amendments.

Subject:                     Amending coverage under the Insurance Guaranty Association Act.

Summary/Major Elements:

· The Insurance Guaranty Association Act is a program to protect insurance product consumers in the case of an insurance provider’s insolvency.

· This act amends covered claims to exclude any amount awarded as punitive or exemplary damages unless those damages are specifically named as covered risks in the policy in question.

· The act also amends covered claims to exclude any amount claimed for incurred but not reported damages.

· This act increases coverage amounts from $150,000 to $300,000 for each covered claim other than worker’s compensation and return of unearned premium claims.

· The act also removes minimum claims that will be covered.

· The act limits coverage to claims filed after the earlier of the final date set by a court for the filing of claims or 25 months after the date of the order of liquidation.

Comments:

· Creates/amends major program:  Insurance Guaranty Association Act.