Continuation of coverage.

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(1) All policies, including bonds and other noncancellable business but not including life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of: (a) A period of thirty days from the date of entry of the liquidation order;

  1. The expiration of the policy coverage;

  2. The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy;

  3. The effective date of a transfer of the policy obligation by the liquidator pursuant tosection 10-3-520 (1)(i); or

  4. The date proposed by the liquidator and approved by the court to cancel coverage.

  1. An order of liquidation under section 10-3-517 shall terminate coverages at the timespecified in subsection (1) of this section for purposes of any other statute.

  2. Policies of life or health insurance or annuities shall continue in force for such periodand under such terms as is provided for by any applicable guaranty association or foreign guaranty association.

  3. Policies of life or health insurance or annuities or any period or coverage of suchpolicies not covered by a guaranty association or foreign guaranty association shall terminate under subsections (1) and (2) of this section.

Source: L. 92: Entire part R&RE, p. 1448, § 14, effective July 1.


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