Enrolled Bill Summary

Senate Bill 1954	Senate Author:  Hancock
Effective:  9-1-21	House Sponsor:  Oliverson

            Senate Bill 1954 amends the Insurance Code to make changes relating to the pledge or encumbrance of an insurer's assets under the Asset Protection Act. The bill revises the act's definition of "asset," establishes certain exemptions from the act, and authorizes the commissioner of insurance to adopt rules regarding the act. The bill provides certain clarification regarding the calculation of the quantitative limits on the encumbrance of an insurer's assets and the point at which compliance with those limits is considered to be achieved. The bill makes certain provisions of the act inapplicable with respect to pledges or encumbrances permitted in a commissioner‑approved transaction relating to separate accounts for guaranteed benefits or funds. The bill subjects a governmental entity to a provision relating to claimant liens on assets.