Relating to the membership of the life and health insurance guaranty association, assessments to member insurers for insurance written by impaired or insolvent member insurers, and including applicability provisions

The bill provides that assessments to member insurers of the life and health insurance guaranty association (association) for long-term care insurance written by an impaired or insolvent insurer shall be allocated by the methodology included in the association’s plan of operation and must provide for percent of the assessment to be allocated to accident and health member insurers and percent to be allocated to life and annuity member insurers. Current law does not provide for life and annuity members to be included in the assessment for long-term care insurance written by an impaired or insolvent insurer. The bill also provides for the inclusion of health maintenance organizations, other than limited service organizations, as member insurers of the association. Current law does not include health maintenance organizations as members of the association. The bill specifically provides that an entity whose only business in this state is operating as a managed care organization is excluded as a member insurer of the organization.1.25A, assessments for insolvency protection for health maintenance organizations. The bill applies to any member insurer that becomes insolvent or unable to fulfill the member insurer’s contractual obligations on or after the date the bill becomes effective.