AN ACT RELATING TO INSURANCE -- DOMESTIC INSURANCE COMPANIES

SB 2775 updates and modernizes sections of state law governing domestic insurance companies by repealing several outdated provisions related to charter forfeiture and receivership. The bill removes old legal language regarding how courts handle insolvent or unsafe insurance companies and replaces it with updated procedures for appointing receivers, managing assets, and settling claims. It also adds new authority for receivers to sell insurance charters and licenses separately from company assets and clarifies protections for parties who reach court-approved settlements with insolvent insurers. These changes directly affect insurance regulators, insurance company officers, receivers appointed during insolvency proceedings, and policyholders or creditors of failing insurers.