Page 8, lines 3 and 4: Insert the words "(b) The Association may:" between lines 3 and 4. Title II Page 19, line 25: Change the period to a comma at the end of the sentence and add the words "and by striking out the figure $150,000' in the last sentence thereof and . inserting in lieu thereof the figure '$1,500,000'." Page 20, lines 4 and 5 and line 9: Change the word "figure" Title III Page 20, line 26: Insert the following new section after line 26. "Sec. 302. Section 10 of Chapter V of the Life Insurance Act as amended (D.C. Code, sec. 35-710), is further amended by adding subsection (10) to read as follows: Subject to the terms of the policy relating to assignment of incidents of ownership thereunder, a person whose life is insured under a policy of group life insurance may assign any or all incidents of ownership granted him under such policy or under any provision of this chapter, including but not limited to any right to designate a beneficiary or beneficiaries, to have issued to him an individual policy arising from conversion as provided in the group policy or as provided in this chapter, and to pay premiums. This subsection shall be construed as declaring the law prior to its enactment and not modifying it." Title V Page 22, line 19: After the word "approved" insert the words Page 22, line 20: Change the word "is" to "are". S. 2208 Explanation of Technical Amendments Title I The amendment corrects a technical omission in the bill. Title II The amendment is necessary to increase requirements for mutual companies as well as for stock life insurance companies. The original transmittal increased the requirement for stock companies only because that was the area of the greatest need; however, further study indicates a general trend in the States to treat stock and mutual companies the same in this respect. The amendment will clarify the grandfather clause to make it clear it includes the mutual companies. Title III The addition of a new subsection is recommended in order to give statutory basis for the assignment of incidents of ownership of life insurance policies. Although this is a common practice, the Internal Revenue Service has indicated that there must be a statutory basis for the practice. Title V The revision is needed in order to correct a drafting oversight in the original transmittal. CAPITAL AND SURPLUS REQUIREMENTS As Of June 1971 The tabulation shows the initial minimum capital and surplus require-· ments in each state for foreign stock life insurance companies, writing life and disability insurance, assuming youngest qualifying age if age is a requirement. Percentage surplus requirements are shown when applicable and expressed in the combined column as an amount applied to minimum capital required. |