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Assessments
Assessments – In General
Maine Liberty Mutual Ins. Co. v. Superintendent of Ins., 689 A.2d 600 (Me. 1997).
Amendments to Maine Guaranty Association assessment laws were not
retroactively applied to insurer who withdrew before statutory effective date.
Operative event which triggered application of the statute was a postamendment
assessment of the insurer for an insolvency which occurred before
it withdrew from the state. Insurer’s withdrawal from the market did not
change its liability under the Act for pre‐withdrawal insolvencies.
Minnesota Minnesota Life & Health Ins. Guar. Ass'n v. Department of Commerce, 400
N.W.2d 769 (Minn. Ct. App. 1987). In the context of assessing its member
insurers based upon premiums collected, the Minnesota association greatly
reduced the assessment base by excluding GICs and DACs as uncovered annuity
contracts under the Minnesota Act. The court, however, used the Act’s liberal
construction language to find coverage for unallocated annuities and ordered
the association to recalculate assessments for all member insurers.
Washington
Aetna Life Ins. Co. v. Washington Life & Disability Ins. Guar. Ass'n, 83 Wash.2d
523, 520 P.2d 162 (1974). Guaranty association's power to assess foreign insurers
doing business in the state is constitutional; there is a rational basis for differing
treatment of domestic and foreign insurers; assessments are not
unconstitutional takings or retroactive taxes and do not impair existing contract
rights.
Powers and Duties of the Commissioner
Duties and Powers of the Commissioner – In General
Alaska
Alaska Life & Disability Ins. Guar. Ass’n v. State of Alaska, 3 AN‐94‐6680 CIV.
(Alaska Super. Ct. April 9, 1997). Alaska Guaranty Association did not fulfill its
statutory obligations through its participation in the Executive Life
Rehabilitation Plan because the restructured contracts assumed by Aurora
differed materially from those issued by Executive Life. The Association Act
does not provide for assumption or guarantee of restructured contracts. The
only relief authorized is the imposition of a contract lien; there is no express
authorization for any other modification of the original contract. Moreover, the
Association failed to obtain the Director’s approval of its participation in the
ELIC rehabilitation plan. There must be some record showing that the Director
reached a considered decision. The Director plays a vital role in the
administration of the Act, including the responsibility to determine whether a
guaranty plan meets the technical requirements of the Act and to consider
whether the plan is in the public interest.
Oregon Mongelli v. Oregon Life & Health Ins. Guar. Ass'n, 85 Or. App. 518, 737 P.2d 633
(1987). Commissioner’s discretionary decision not to assume the duties of the
association at a particular time will not be overturned unless there is no rational
basis for the decision.
Unlicensed Insurer
Oklahoma
Intervenor Policy Holders of Am. Indem. Trust v. Oklahoma Life & Health Ins.
Guar. Ass'n, 825 P.2d 1341 (Okla. 1992). Unqualified putative ERISA trust was
never a licensed member insurer, despite the fact that its contracts were sold by