AB551: Bill Text

AB551,23,10 646.13 (4) When duty to defend terminates. Any obligation of the board to defend an insured ceases upon the board's payment, by settlement releasing the insured or on a judgment, of an amount equal to the lesser of the board's covered claim obligation limit or the applicable policy limit, subject to any express policy terms regarding tender of limits.

AB551, s. 70 Section 70. 646.15 (1) (a) 2. of the statutes is amended to read:

AB551,23,13 646.15 (1) (a) 2. The institution or further prosecution of any action or proceeding involving the insurer or in which the board is obligated to defend a party.

AB551, s. 71 Section 71. 646.31 (1) (a) of the statutes is amended to read:

AB551,23,20 646.31 (1) (a) Issued by authorized insurer. The claim arises out of an insurance policy or annuity issued by an insurer which is in liquidation and which was authorized to do business in this state either at the time the policy or annuity was issued or when the insured event occurred, and against which an order of liquidation, which is not stayed, has been entered by a court of competent jurisdiction in the insurer's domiciliary state.

AB551, s. 72 Section 72. 646.31 (1) (cm) of the statutes is created to read:

AB551,23,25 646.31 (1) (cm) Termination of coverage. Except for claims under life insurance policies, annuities or noncancelable or guaranteed renewable disability insurance policies, the claim arises within 30 days after the order of liquidation is entered or before any of the following occur:

AB551,24,2 1. The policy expires, if the expiration date is less than 30 days after the order of liquidation is entered.

AB551,24,4 2. The insured replaces or cancels the policy, if either action is taken within 30 days after the order of liquidation is entered.

AB551, s. 73 Section 73. 646.31 (2) (c) of the statutes is amended to read:

AB551,24,8 646.31 (2) (c) Owners of property interests. The first-party claim of a person having an insurable interest in or related to property which was situated with a permanent location in this state at the time of the insured event.

AB551, s. 74 Section 74. 646.31 (2) (d) (intro.) and 1. of the statutes are consolidated, renumbered 646.31 (2) (d) and amended to read:

AB551,24,13 646.31 (2) (d) Third party claimants. A claim under a liability or workers' compensation insurance policy, if: 1. Either either the insured or the 3rd party claimant was a resident of this state at the time of the insured event ;.

AB551, s. 75 Section 75. 646.31 (2) (d) 2. of the statutes is repealed.

AB551, s. 76 Section 76. 646.31 (2) (d) 3. of the statutes is repealed.

AB551, s. 77 Section 77. 646.31 (6) (a) of the statutes is amended to read:

AB551,24,20 646.31 (6) (a) The portion of a loss claim for which indemnification is provided by other benefits or advantages, which may not be included in the class classes of claims defined by specified in s. 645.68 (3) (intro.), may not be claimed from the fund under this chapter.

AB551, s. 78 Section 78. 646.31 (13) of the statutes is created to read:

AB551,24,25 646.31 (13) Residency. For purposes of determining residency in this section, the residency of a claimant, insured or policyholder that is not a natural person is the state in which the claimant's, insured's or policyholder's principal place of business is located.

AB551, s. 79 Section 79. 646.51 (9) of the statutes is created to read:

AB551,25,6 646.51 (9) Obligation to contribute ceases. (a) Except as provided in par. (b), if an insurer's license or certificate of authority to do business in this state terminates or expires, the insurer's obligation to pay assessments under this section ceases beginning on the day after the insurer's license or certificate of authority terminates or expires.

AB551,25,9 (b) An insurer whose license or certificate of authority to do business in this state terminates or expires remains liable after the termination or expiration to pay all of the following:

AB551,25,11 1. Assessments made or called before the insurer's license or certificate of authority terminated or expired.

AB551,25,14 2. Assessments made or called after the insurer's license or certificate of authority terminated or expired that relate to a liquidation order entered before the insurer's license or certificate of authority terminated or expired.

AB551, s. 80 Section 80. 646.60 (1) (a) of the statutes is amended to read:

AB551,25,18 646.60 (1) (a) Settlements by the fund. The liquidator is bound by determinations and settlements of covered loss claims , and by payments of claims, made by the board under this chapter.

AB551, s. 81 Section 81. 646.60 (1) (b) (intro.) of the statutes is amended to read:

AB551,25,23 646.60 (1) (b) Settlements by comparable funds. (intro.) The liquidator is bound by determinations and settlements of covered loss claims, and by payments of claims, made by funds or organizations of other states that are comparable to the fund under this chapter provided if all of the following apply:

AB551, s. 82 Section 82. 646.60 (1) (b) 1. of the statutes is amended to read:

AB551,26,3 646.60 (1) (b) 1. That the The laws of the other states give equivalent recognition to the determinations and settlements of loss claims, and to payments of claims, made by the fund; and.

AB551, s. 83 Section 83. 646.60 (1) (b) 2. of the statutes is amended to read:

AB551,26,6 646.60 (1) (b) 2. That if If the same claim is reported as paid by 2 or more funds, payment shall be to the fund with a prior obligation under s. 646.31 (7) (9).

AB551, s. 84 Section 84. Initial applicability.

AB551,26,11 (1) The treatment of sections 601.13 (2), 645.68 (intro.), (2), (3), (3c), (3m), (3r) (c), (5), (7) and (8) (a), (b), (c), (d), (e) and (f), 646.13 (3) (c) and 646.31 (1) (cm) of the statutes first applies to liquidation proceedings for which liquidation orders are entered on the effective date of this subsection.

AB551,26,15 (2) The treatment of sections 646.13 (1) (b) (intro.), 1. and 2., (2) (e) and (f), (3) (intro.) and (4), 646.15 (1) (a) 2., 646.31 (1) (a), (2) (c) and (d) (intro.), 1., 2. and 3., (6) (a) and (13), 646.51 (9) and 646.60 (1) (a) and (b) (intro.), 1. and 2. of the statutes first applies to liquidation proceedings pending on the effective date of this subsection.

AB551,26,17 (3) The treatment of sections 76.635 (2) and (3) and 76.67 (2) of the statutes first applies to taxable years beginning on January 1, 2000.

AB551,26,18 (End)