§ 58-2-215. Consumer Protection Fund.

§ 58‑2‑215. Consumer Protection Fund.

(a)        A special fund iscreated in the Office of the State Treasurer, to be known as the Department ofInsurance Consumer Protection Fund. The Fund shall be placed in an interestbearing account and any interest or other income derived from the Fund shall becredited to the Fund. Moneys in the Fund shall only be spent pursuant towarrants drawn by the Commissioner on the Fund through the State Treasurer. TheFund shall be subject to the provisions of the Executive Budget Act; exceptthat the provisions of Article 3C of Chapter 143 of the General Statutes do notapply to subdivision (b)(1) of this section.

(b)        All moneys creditedto the Fund shall be used only to pay the following expenses incurred by theDepartment:

(1)        For the purpose ofretaining outside actuarial and economic consultants, legal counsel, and courtreporting services in the review and analysis of rate filings and any otherinsurance regulatory matters, in conducting all hearings, and through any finaladjudication.

(2)        In connection withany delinquency proceeding under Article 30 of this Chapter, for the purpose oflocating and recovering the assets of or any other obligations or liabilitiesowed to or due an insurer that has been placed under such proceeding.

(3)        In connection withany civil litigation, other than under Chapter 150B of the General Statutes orany appeal from an order of the Commissioner or his deputies, that is commencedagainst the Commissioner or his deputies and that arises out of the performanceof their official duties, for the purpose of retaining outside consultants,legal counsel, and court reporting services to defend such litigation.

(c)        Moneys appropriatedby the General Assembly shall be deposited in the Fund and shall become a partof the continuation budget of the Department of Insurance. Such continuationbudget amount shall equal the actual expenditures drawn from the Fund duringthe prior fiscal year plus the official inflation rate designated by theDirector of the Budget in the preparation of the State Budget for each ensuingfiscal year; provided that if interest income on the Fund exceeds the amountyielded by the application of the official inflation rate, such continuationbudget amount shall be the actual expenditures drawn from the Fund, except thatthe appropriation for the 1995‑96 fiscal year shall not exceed the sum ofseven hundred fifty thousand dollars ($750,000) and for the 1996‑97fiscal year shall not exceed the sum of two hundred fifty thousand dollars($250,000). In the event the amount in the Fund exceeds two hundred fiftythousand dollars ($250,000) at the end of any fiscal year, beginning with the1995‑96 fiscal year, such excess shall revert to the General Fund.

(d)        Repealed by SessionLaws 1996, c. 507, s. 11A(a), (b). (1989 (Reg. Sess., 1990), c. 1069, s. 22; 1993 (Reg.Sess., 1994), c. 769, s. 14.1; 1995, c. 507, s. 11A(a), (b), (c); 2005‑215,s. 21.)