Opinion ID: 1238858
Heading Depth: 2
Heading Rank: 1

Heading: The 1991 Act applies to the unallocated annuity contracts (the GICs) in this case.

Text: The 1987 Act does not apply because ELIC was not insolvent until 1991. Section 2028 of the 1987 and 1991 Acts provides for payments by the Guaranty Association for covered policies of impaired or insolvent insurers. Subsection 2024(7) of both Acts defines an insolvent insurer as one who  after the effective date of th[e] Act, is placed under an order of liquidation by a court of competent jurisdiction with a finding of insolvency. (Emphasis added.) [1] Because ELIC did not become insolvent, i.e. had not been found to be insolvent by a court of competent jurisdiction, until after the effective date of the 1991 Act, both of the unallocated annuity contracts at issue in the case are governed by the 1991 Act. Other courts have reached this same conclusion when considering similar statutory language in cases involving guaranty associations: Collins v. Cumberland Gap Provision Co., Inc., 754 S.W.2d 864 (Ky.Ct.App.1988) (worker's compensation claim); Durish v. Channelview Bank, 809 S.W.2d 273 (Tx Ct. App.1991) (surety bond); see Aetna Life Ins. Co. v. Washington Life and Disability Ins. Guar. Ass'n, 83 Wash.2d 523, 520 P.2d 162, 170 (1974).