Section 27-44-3

Scope of chapter.

(a) This chapter shall apply to direct life insurance policies, disability insurance policies, annuity contracts, and contracts supplemental to life and disability insurance policies, and annuity contracts issued by persons licensed to transact insurance in this state at any time, except as limited by this section.

(b) This chapter shall not apply to:

(1) That portion or part of a variable life insurance or variable annuity contract not guaranteed by an insurer.

(2) That portion or part of any policy or contract under which the risk is borne by the policyholder.

(3) Any policy or contract or part thereof assumed by the impaired or insolvent insurer under a contract of reinsurance, other than reinsurance for which assumption certificates have been issued.

(4) Any policy or contract issued by non-profit hospital and medical service plans, fraternal benefit societies, cooperative hospital associations, or health maintenance organizations.

(5) A policy or contract providing coverage to persons not specified in subsection (c).

(c) This chapter shall provide coverage for the policies and contracts specified in subsection (a) as follows:

(1) To persons who, regardless of where they reside (except for non-resident certificate holders under group policies or contracts), are the beneficiaries, assignees, or payees of the persons covered under subdivision (2).

(2) To persons who are owners of, or certificate holders under, covered policies or contracts, and who are residents, or are not residents, but only under all of the following conditions:

a. The insurers which issued the policies or contracts are domiciled in this state.

b. The insurers at the time of issuance of the policies or contracts did not hold licenses or certificates of authority in the state in which such persons reside.

c. The persons are not eligible for coverage by a guaranty association of another state providing protection substantially similar to that provided by this chapter for residents of this state.

(d) Any member insurer that has been declared insolvent and is placed under a final order of liquidation, rehabilitation, or conservation by a court of competent jurisdiction prior to May 17, 1993 shall be subject to this chapter as it existed prior to May 17, 1993.

(Acts 1982, No. 82-561, p. 922, §3; Acts 1993, No. 93-675, p. 1240, §11.)