Sec. 38a-83. (Formerly Sec. 38-43). Securities required by other states deposited with State Treasurer.
Sec. 38a-83. (Formerly Sec. 38-43). Securities required by other states deposited with State Treasurer. (a) When any state requires insurance companies of other
states to deposit with some officer of such other state securities in trust for policyholders
of the companies as a prerequisite to their transacting business in that state, the Treasurer
of this state may receive on deposit from any domestic insurance company the securities
required by the laws of that other state. The legal title to the securities shall be transferred
to the Treasurer in trust for the policyholders of the insurance company, and the Treasurer
shall hold the securities in trust for the policyholders. The insurance company may
collect and receive the interest and dividends on the securities and may withdraw the
securities on depositing with the Treasurer other securities of like character and par
value. The Treasurer shall issue a certificate, under seal, of any such deposit for each
state which requires such a certificate, which shall state the items and the par value of
securities deposited. The Treasurer shall charge a fee of thirty-five dollars to the insurance company for each certificate so issued.
(b) Any insurance company which has deposited securities with the State Treasurer,
has caused all of its unexpired policies to be paid, cancelled or reinsured, and all of
its liabilities under such policies to be extinguished or to be assumed by some other
responsible company having a similar deposit with the treasurer or with the proper officer
of some other state, or has subsequently made a similar deposit of the sum required with
the proper officer of some other state, may apply to the Treasurer for a return of such
deposited securities. The Treasurer, on receipt of an application from the company,
verified by the oath of its president or secretary, and on being satisfied by an examination
of the company's books, and of its officers under oath, that all of the company's policies
are so paid, cancelled, extinguished or reinsured, or that such subsequent deposit was
duly made and has not since been withdrawn, as evidenced by a certificate from the
proper officer of such other state, shall deliver such securities to the company.
(1949 Rev., S. 6046; P.A. 74-32, S. 1; P.A. 90-243, S. 16; P.A. 91-68, S. 2.)
History: P.A. 74-32 rephrased certificate provisions re par value to delete reference to market value and treasurer's
statement that he is satisfied market value is accurately represented; P.A. 90-243 divided section into Subsecs. and authorized state treasurer to receive, on deposit, legal title to securities required to be collected by the laws of other states as a
prerequisite of doing business in that state, to hold the securities in trust for the policyholders and to return all deposited
securities once all obligations have been met; Sec. 38-43 transferred to Sec. 38a-83 in 1991; P.A. 91-68 imposed a $35
fee for each certificate.