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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

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 Asso11 ciation either on its own behalf or on behalf of such insured 12 may apply to have such judgment, order, decision, verdict, or finding set aside by the same court or administrator that 14 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 termi17 nate the operation of the District of Columbia Insurance 18 Guaranty Association as to any kind of insurance afforded 19 by property or casualty insurance policies with respect to 20 which he has found, after hearing, that there is in effect 21 a statutory or voluntary plan which

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(1) is a permanent plan which is adequately funded or for which adequate funding is provided; and

(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

able and effective to such policyholders and residents

than the protection and benefits provided with respect to such kind of insurance under this title.

(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.

14 (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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1 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.

5 TITLE II-AMENDMENT OF THE LIFE INSURANCE ACT OF THE DISTRICT OF COLUMBIA

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TO INCREASE CAPITAL REQUIREMENTS OF
LIFE INSURANCE COMPANIES

9 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, 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

last sentence "$150,000" and inserting in lieu thereof "$1,500,000".

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

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

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

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

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

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

7 TITLE III-AMENDMENT OF THE LIFE INSUR

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ANCE ACT OF THE DISTRICT OF COLUMBIA

TO INCREASE GROUP TERM LIFE INSURANCE
AMOUNT LIMITATIONS

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 Insur13 ance 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".

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SEC. 302. The first sentence of section 11 of chapter V 20 of the Life Insurance Act (D.C. Code, sec. 35–711), 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 fol25 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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1 whether issued before or after the effective date of this clause,

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

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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 ter8 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 11 or any part of his rights and privileges under the policy be12 fore the effective date of this clause and, subject to the terms 13 of the policy, an assignment by an insured before or after 14 the effective date of this clause is valid for the purposes of 15 vesting in the assignee 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:".

19 TITLE IV-AMENDMENT OF THE FIRE AND

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CASUALTY ACT REGULATING THE BUSINESS

OF FIRE, MARINE, AND CASUALTY INSUR

ANCE IN THE DISTRICT OF COLUMBIA

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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