Asset Protection Act

The act governs the safeguarding of assets held by regulated entities, setting the terms under which those assets may be pledged, encumbered, or otherwise committed and identifying which entities and holdings fall within its reach and which are exempt. It works primarily by restricting encumbrance of covered assets, requiring periodic reporting to the state insurance commissioner, and granting rulemaking authority to implement its terms. Where a covered entity fails, the act gives claimants a lien against certain assets and elevates their claims to a preferred position in the distribution of the estate on liquidation.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.