House Bill No. 5463
               House Bill No. 5463

               PUBLIC ACT NO. 98-19


AN  ACT INCREASING THE LIMIT OF INSURANCE GUARANTY
ASSOCIATION   COVERAGE   FOR   HEALTH    INSURANCE
BENEFITS.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Subsection (c) of section 38a-860
of  the  general  statutes  is  repealed  and  the
following is substituted in lieu thereof:
    (c)  The  benefits  for  which the association
may become liable shall in  no  event  exceed  the
lesser  of:  (1)  The  contractual obligations for
which the insurer is liable  or  would  have  been
liable  if it were not an impaired insurer, or (2)
(A) with respect to any one  life,  regardless  of
the  number  of  policies  or contracts: (i) Three
hundred thousand dollars in life  insurance  death
benefits,  but  no  more than one hundred thousand
dollars  in  net  cash  surrender  and  net   cash
withdrawal values for life insurance; (ii) [three]
FIVE hundred thousand dollars in health  insurance
benefits, including any net cash surrender and net
cash withdrawal values; (iii) one hundred thousand
dollars  in the present value of annuity benefits,
including  net  cash  surrender   and   net   cash
withdrawal   values;  (B)  with  respect  to  each
individual   participating   in   a   governmental
retirement  plan established under Section 401(k),
403(b)  or  457  of  the  United  States  Internal
Revenue  Code  covered  by  an unallocated annuity
contract  or  the  beneficiaries  of   each   such
individual  if  deceased,  in  the  aggregate, one
hundred thousand dollars in present value  annuity
benefits,  including  net  cash  surrender and net
cash withdrawal values; provided, however, that in
no event shall the association be liable to expend
more  than  the  [three]  FIVE  hundred   thousand
dollars  in  the aggregate with respect to any one
individual under subparagraphs (A) and (B) of this
subsection.  (C)  With respect to any one contract
holder covered by any unallocated annuity contract
not   included   in   subparagraph   (B)  of  this
subsection,  five  million  dollars  in  benefits,
irrespective  of the number of such contracts held
by that contract holder.
    Sec.  2.  This  act shall take effect from its
passage.

Approved April 24, 1998