HB2351: Life, Accident & Sickness Insurance Guaranty Association; maximum amount of contractual obligation.

Chief Patron

Del. Robert Tata (R-85)

Robert Tata (R-85)
Virginia Beach, VA
Served: 1984–

Progress

	Introduced
	Passed Committee
	Passed House
	Passed Senate
	Signed by Governor
	Became Law

Status

03/19/2007: signed by governor

View Entire History

Summary

Virginia Life, Accident and Sickness Insurance Guaranty Association.  Provides that a maximum of $250,000 in the present value of annuity benefits is to be considered in calculating the maximum amount of the contractual obligations for which the Virginia Life, Accident and Sickness Insurance Guaranty Association may become liable with respect to any one life.  To qualify, an annuity shall be established and maintained as an individual retirement account, Section 457 Plan account, defined contribution plan account, or Keogh Plan account.  The measure responds to recent FDIC rules that provide up to $250,000 of protection for bank deposits and accounts utilized for certain self-directed individual retirement accounts. The measure also increases the maximum amount that the Association may be liable to expend in the aggregate with respect to any one individual from $300,000 to $350,000.