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1 action taken by them in the performance of their powers

2 and duties under this title.

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SEC. 117. All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court

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in the District of Columbia shall be stayed for sixty days

6 from the date the insolvency is determined to permit proper 7 defense by the Association of all pending causes of action. As 8 to any covered claims arising from a judgment under any

9 decision, verdicts, or findings based on the default of the

10 insolvent insurer or its failure to defend an insured, the Asso

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ciation either on its own behalf or on behalf of such insured

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may apply to have such judgment, order, decision, verdict, or finding set aside by the same court or administrator that

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made such judgment, order, decision, verdict, or finding and 15 shall be permitted to defend against such claim on the merits.

SEC. 118. (a) The Commissioner shall by order termi

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nate the operation of the District of Columbia Insurance

18 Guaranty Association as to any kind of insurance afforded

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by property or casualty insurance policies with respect to which he has found, after hearing, that there is in effect

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a statutory or voluntary plan which

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(1) is a permanent plan which is adequately

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funded or for which adequate funding is provided; and

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(2) extends or will extend to District of Columbia

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policyholders and residents protection and benefits with respect to insolvent insurers not substantially less favor

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able and effective to such policyholders and residents than the protection and benefits provided with respect

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to such kind of insurance under this title.

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(b) The Commissioner shall by the same such order

7 authorize discontinuance of future payments by insurers to

8 the District of Columbia Insurance Guaranty Association 9 with respect to the same kinds of insurance, except assess10.ments and payments shall continue, as necessary, to liquidate 11 covered claims of insurers adjudged insolvent prior to said

12 order and the related expenses not covered by such other

13 plan.

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(c) In the event the operation of any account of the

15 District of Columbia Insurance Guaranty Association shall

16 be so terminated as to all kinds of insurance otherwise within

17 its scope, the Association as soon as possible thereafter shall 18 distribute the balance of moneys and assets remaining in said 19 account (after discharge of the functions of the Association 20 with respect to prior insurer insolvencies not covered by such 21 other plan, together with related expenses) to the insurers

22 which are then writing in the District of Columbia policies

23 of the kinds of insurance covered by such account, and which

24 had made payments into such account, pro rata upon the

25 basis of the aggregate of such payments made by the respec

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tive insurers to such account during the period of five years

2 next preceding the date of such order. Upon completion of 3 such distribution with respect to all of the accounts specified 4 in section 105, this title shall be deemed to have expired.

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SEC. 201. Chapter 3 of the Life Insurance Act (D.C. 10 Code, secs. 35-501--35-541) is amended as follows:

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(1) Section 8 (a) of such chapter (D.C. Code,

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sec. 35–508 (a)) is amended (A) by striking out in the first sentence "$200,000” and inserting in lieu thereof “$1,000,000”, and (B) by striking out in the

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last sentence “$150,000” and inserting in lieu thereof

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(2) Section 8 (b) of such chapter (D.C. Code, sec. 35–508 (b)) is amended (A) by inserting or subsequent amendment” immediately after “subsection",

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and (B) by inserting or the minimum surplus required of a mutual company" immediately after "stock

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company”.

(3) Paragraph (10) (b) (ii) of section 35 of such chapter (D.C. Code, sec. 35–535 (10) (b) (ii)). is

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amended by striking out “$300,000” and “$150,000”

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and inserting in lieu thereof “$1,500,000" in each such

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place.

(4) Paragraph (15) (ii) of section 35 of such chapter (D.C. Code, sec. 35-535 (15) (ii)) is amended by striking out “$300,000” and “$150,000” and insert

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ing in lieu thereof “$1,500,000” in each such place.

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11 SEC. 301. Sections 10 (1) (d), 10 (3) (d), 10 (4) (d), 12 10 (6) (d), and 10 (9) (d) of chapter V of the Life Insurance Act (D.C. Code, secs. 35-710 (1) (d), (3) (d),

) 14 (4) (d), (6) (d), and (9) (d) ), are amended (1) by strik15 ing out “$20,000” and inserting in lieu thereof “$30,000"; 16 (2) by striking out “$40,000” and inserting in lieu thereof 17 “$100,000"; and (3) by striking out “150” and inserting in 18 lieu thereof “300”.

19 Sec. 302. The first sentence of section 11 of chapter V 20 of the Life Insurance Act (D.C. Code, sec. 35-711),

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21 is amended (1) by striking out “and” between clauses (b) 22 and (c), (2) by striking out the colon at the end of clause 23 (c) and inserting in lieu thereof a semicolon and (3) by

24 inserting immediately thereafter a new clause (d) as fol

25 lows: "and (d) that subject to the terms of the policy

26 any person insured under a group life insurance contract,

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whether issued before or after the effective date of this clause,

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may make to any person, other than his employer, an absolute

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3 or collateral assignment of any or all the rights and benefits 4 conferred on him by any provision of such policy or by law, 5 including specifically, but not by way of limitation, any 6 right to designate a beneficiary or beneficiaries thereunder

7 and any right to have an individual policy issued upon ter

8 mination either of employment or of said policy of group

9 life insurance, but nothing herein shall be construed to have

10 prohibited an insured from making an assignment of all

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or any part of his rights and privileges under the policy be

12 fore the effective date of this clause and, subject to the terms

13 of the policy, an assignment by an insured before or after

the effective date of this clause is valid for the purposes of

15 vesting in the assignce all rights and privileges so assigned, 16 but without prejudice to the insurer on account of any pay17 ment it may make or individual policy it may issue prior 18 to receipt of notice of the assignment:”.

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23 SEC. 401. Sections 13 and 14 of chapter II of the Fire 24 and Casualty Act (D.C. Code, secs. 35–1316 and 35–

25 1317), are amended to read as follows:

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