GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
H 1
HOUSE BILL 889*
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Short Title: Struc. Settlement Annuities/Ins. Guar. Assn. |
(Public) |
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Sponsors: |
Representatives Haire, Love, Blue, Faison (Primary Sponsors); Bordsen, Lucas, Mackey, Michaux, and Mills. |
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Referred to: |
Insurance, if favorable, Judiciary III. |
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March 31, 2009
A BILL TO BE ENTITLED
AN ACT TO EXPAND COVERAGE UNDER THE INSURANCE GUARANTY ASSOCIATION WITH RESPECT TO STRUCTURED SETTLEMENT ANNUITIES FOR MATTERS INVOLVING PERSONAL INJURY or illness.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 58‑62‑16 is amended by adding a new subdivision to read:
"(17a) 'Structured settlement annuities' means any annuity benefits payable to a person by an insurer under an annuity contract issued to fund, in whole or in part, a settlement agreement for a matter involving personal injury or illness, including any settlement agreement permitted under Chapter 97 of the General Statutes."
SECTION 2. G.S. 58‑62‑21(a) reads as rewritten:
"§ 58‑62‑21. Coverage and limitations.
(a) This Article provides coverage for the policies and contracts specified in subsection (b) of this section:
(1) To persons other than persons specified in
subdivisions (3) and (4) of this subsection who, regardless of where they
reside (except for nonresident certificate holders under group policies), are
the beneficiaries, assignees, or payees of the persons covered under
subdivision (2) of this subsection, andsubsection;
(2) To persons other than persons specified in
subdivisions (3) and (4) of this subsection who are owners or certificate
holders under the policies, or in the case of unallocated annuity contracts to
the persons who are the contract holders, and who are residents of this State,
or who are not residents of this State, but only under all of the following
conditions: (i) the insurers that issued the policies are domiciled in this
State; (ii) the insurers never held a license in the states in which the
persons reside; (iii) the states have associations similar to the association
created by this Article; and (iv) the persons are not eligible for coverage by
the associations.associations;
(3) To persons who are payees (or beneficiaries of payees if the payees are deceased) under structured settlement annuities if the payees are residents of this State, regardless of where the contract owners of the structured settlement annuities reside; and
(4) To persons who are payees (or beneficiaries of payees if the payees are deceased) under structured settlement annuities if the payees are not residents of this State, but only under both of the following conditions:
a. The contract owners of the structured settlement annuities are residents of this State or, if not residents of this state, (i) the insurers that issued the structured settlement annuities are domiciled in this State and (ii) the state in which the contract owners reside has an association similar to the Association created by this Article.
b. Neither the payees (or beneficiaries of payees if the payees are deceased) nor the contract owners of the structured settlement annuities are eligible for coverage by an association of the state in which the payees or contract owners reside."
SECTION 3. This act is effective when it becomes law and applies to claims submitted to the Insurance Guaranty Association on or after that date.