NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      SENATE BILL 10-049
      
      
      BY SENATOR(S) Sandoval, Bacon, Hudak, Steadman, Tochtrop, Boyd,
      Carroll M., Johnston, Penry, Romer, Tapia;
      also REPRESENTATIVE(S) Benefield, Frangas, Hullinghorst, Labuda,
      Stephens.
      
      
      Concerning the liability limits applicable to the life and health
           insurance protection association, and, in connection
           therewith, increasing the liability limits for annuity
           benefits, structured settlement annuities, and long-term
           care benefits.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  10-20-104 (3) (b) (I) (C), (3) (b) (I) (D), and (3) (b)
      (II), Colorado Revised Statutes, are amended, and the said 10-20-104 (3) (b)
      (I) is further amended BY THE ADDITION OF A NEW
      SUB-SUBPARAGRAPH, to read:
      
           10-20-104.  Coverage and limitations - coordination of benefits. 
      (3)  The benefits for which the association may become liable shall not
      exceed the lesser of:
      
           (b) (I)  With respect to any one life, regardless of the number of
      policies or contracts with that insurer:
      
           (C)  One Two hundred fifty thousand dollars in the present value
      of annuity benefits, including net cash surrender and net cash withdrawal
      values; or
      
           (D)  With respect to each payee of a structured settlement annuity,
      one two hundred fifty thousand dollars in present value annuity benefits,
      in the aggregate, including net cash surrender and net cash withdrawal
      values; or
      
           (E)  Three hundred thousand dollars for long-term care
      benefits.
      
           (II)  The association shall not be liable to expend more than three
      hundred thousand dollars, in the aggregate, with respect to any one life
      under sub-subparagraphs (A) to (D) (E) of subparagraph (I) of this
      paragraph (b); except that, with respect to benefits for basic hospital,
      medical and surgical, and major medical insurance under sub-subparagraph
      (B) of subparagraph (I) of this paragraph (b), the aggregate liability of the
      association shall not exceed five hundred thousand dollars with respect to
      any one individual.
      
           SECTION 2.  Applicability.  This act shall apply to coverages and
      contracts of member insurers that are declared insolvent on or after the
      effective date of this act.
      
           SECTION 3.  Safety clause.  The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                Terrance D. Carroll
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Karen Goldman                          Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO