Sec. 38a-76. (Formerly Sec. 38-25). Reserves.
Sec. 38a-76. (Formerly Sec. 38-25). Reserves. (a) Each insurance company transacting business in this state shall, at all times, maintain reserves equal in amount to its
liability under all its policy contracts, as the same are computed in accordance with the
provisions of the statutes or with the requirements of the commissioner adopted upon
reasonable consideration of ascertained experience for the purpose of adequately protecting the insured or securing the solvency of such company.
(b) A domestic insurer transacting insurance only in a foreign country may calculate
its reserves on insurance written in that foreign country in accordance with the reserve
standards required or otherwise approved by such foreign country. For purposes of this
section and section 38a-77, (1) a domestic insurer shall be deemed to "transact insurance" or "do business" in a state, district or territory of the United States if, within any
state, district or territory of the United States, that insurer sells or issues any policy
contract or otherwise makes any solicitation or inducement or engages in any negotiations with respect to the same; but (2) an insurer shall not be deemed to transact insurance
or do business in a state, district or territory of the United States by reason of the fact
that such insurer (A) holds a license to transact insurance in a state, district or territory
of the United States; (B) has issued insurance policies or contracts to residents of a
foreign country who subsequently reside in a state, district or territory of the United
States; or (C) performs administrative or oversight functions in a state, district or territory
of the United States. A domestic insurer transacting insurance only in a foreign country
may invest its funds in a manner consistent with the laws, regulations and administrative
practices of the foreign country in which it transacts insurance without limitations under
sections 38a-102 to 38a-102h, inclusive.
(1949 Rev., S. 6078; P.A. 98-79, S. 2.)
History: Sec. 38-25 transferred to Sec. 38a-76 in 1991; P.A. 98-79 designated existing language as Subsec. (a) and
added new Subsec. (b) re calculating reserves and investments for a domestic insurer transacting insurance only in a foreign
country.