# Conn. Gen. Stat. § 38a-55: Sec. 38a-55. Hypothecation of assets > Connecticut · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-55 ## Section - **Citation:** Conn. Gen. Stat. § 38a-55 - **Heading:** Sec. 38a-55. Hypothecation of assets - **Jurisdiction:** Connecticut - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Connecticut Code / Title 38a / Chapter 698 / Section 38a-55 ## Text (b) (1) No domestic insurer, domestic health care center or domestic fraternal benefit society may, without the prior written consent of the Insurance Commissioner, pledge, hypothecate or otherwise encumber its assets to secure its own debt, guaranty or obligations if the amount of the assets pledged, hypothecated or otherwise encumbered, when the pledge, hypothecation or encumbrance is made, together with the aggregate amount of assets pledged, hypothecated or encumbered to secure all such debts, guarantees and obligations, exceeds the lesser of five per cent of admitted assets or twenty-five per cent of surplus as regards policyholders as reported in its last financial statement filed with the commissioner pursuant to section 38a-53 or 38a-614 . (2) Nothing in this subsection shall be construed as prohibiting a domestic insurer, domestic health care center or domestic fraternal benefit society from pledging, hypothecating or encumbering any assets in connection with: (A) Transactions in the ordinary course of business, including, but not limited to: (i) Complying with any statutory requirement, (ii) reinsurance transactions otherwise in compliance with applicable statutory requirements, or (iii) investments or investment practices otherwise in compliance with applicable statutory requirements, including, but not limited to, securities lending, repurchase transactions, reverse repurchase transactions, swap, futures and options transactions, and any other transactions which are not prohibited by the investment law and regulations of this state; (B) transactions subject to the provisions of sections 38a-129 to 38a-140 , inclusive; or (C) any other transaction deemed excluded by the Insurance Commissioner. Assets pledged, hypothecated or encumbered pursuant to subparagraph (A), (B) or (C) of this subdivision shall not be charged against the limits set forth in subdivision (1) of this subsection. (3) In the case of a domestic life insurance company, the provisions of this subsection shall apply to a separate account only to the extent that reserves for guarantees with respect to (A) benefits guaranteed as to dollar amount and duration or (B) funds guaranteed as to principal amount or stated rate of interest are held in a separate account in accordance with subdivision (3) of subsection (a) of section 38a-433 . ## Nearby sections - [Conn. Gen. Stat. § 38a-41 Sec. 38a-41. (Formerly Sec. 38-20). Authority to do business. Licensure. Revocation or refusal to renew license. Fines. Company owned by a state or foreign nation or company controlled by insureds not to be issued license. Appeals. Plan of operations. Type of business to be conducted.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-41.md) - [Conn. Gen. Stat. § 38a-41a Sec. 38a-41a. Certificate authorizing formation of insurance company or health care center. Information required by commissioner. Costs.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-41a.md) - [Conn. Gen. Stat. § 38a-42 Sec. 38a-42. (Formerly Sec. 38-20b). Contracts with life, accident or health insurance producers.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-42.md) - [Conn. Gen. Stat. § 38a-43 Sec. 38a-43. (Formerly Sec. 38-22). Certain insurance companies and health care centers may be prohibited from transacting business in this state.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-43.md) - [Conn. Gen. Stat. § 38a-44 Sec. 38a-44. (Formerly Sec. 38-64b). Notice to commissioner of intent to discontinue line of insurance.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-44.md) - [Conn. Gen. Stat. § 38a-47 Sec. 38a-47. (Formerly Sec. 38-53a). Payments by domestic insurance companies for expenditures of Insurance Department and amount appropriated to Office of Health Strategy from Insurance Fund.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-47.md) - [Conn. Gen. Stat. § 38a-48 Sec. 38a-48. (Formerly Sec. 38-53b). *(See end of section for amended version and effective date.) Assessment of payments by domestic insurance companies. Adjustments. Penalty. Interest. Payments credited to Insurance Fund. Allocation of assessments.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-48.md) - [Conn. Gen. Stat. § 38a-53 Sec. 38a-53. (Formerly Sec. 38-24). Requirements re filing of annual reports and financial statements. Late filing fee. Due date extensions.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-53.md) - [Conn. Gen. Stat. § 38a-54 Sec. 38a-54. Audited reports.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-54.md) - [Conn. Gen. Stat. § 38a-55 Sec. 38a-55. Hypothecation of assets.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-55.md) - [Conn. Gen. Stat. § 38a-58a Sec. 38a-58a. Transfer of domicile: By foreign insurance company to this state; by domestic insurance company to another state. Procedures.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-58a.md) - [Conn. Gen. Stat. § 38a-58b Sec. 38a-58b. Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-58b.md) - [Conn. Gen. Stat. § 38a-58d Sec. 38a-58d. Use of state as alien insurer's state of entry. Requirements. Examination of trusteed assets. Revocation of license and liquidation of United States branch.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-58d.md) - [Conn. Gen. Stat. § 38a-58e Sec. 38a-58e. Annual and quarterly statements by United States branch.](https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-58e.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_CT_T38a_C698_S38a-55. Check the current official text before relying on it. Not legal advice.