Legislation
Summary of OID 2010 Legislative Agenda
HB 1613 – NAIC Accreditation/Confidentiality Bill (Read the Entire Bill Here)
The bill passed the House 86-8 and passed the Senate on the last day of session 25-21. The Governor signed the bill on June 7, 2010. The bill is effective November 1, 2010.
- Keeps Department in compliance with NAIC Accreditation standards
- Clarifies existing law regarding analysis and the examination process
- Helps make examinations/audits more effective
- Allows analysts/examiners to be more thorough throughout the examination process
SB 2042 – Perpetual Care Fund and Cemetery Merchandise Duties Transfer Bill (Read the Entire Bill Here)
The bill passed the Senate 44-3 and passed the House 97-3. The Governor signed the bill on April 9, 2010. The bill is effective July 1, 2010
- Transfers regulatory authority of perpetual care funds from the Banking Department to the Insurance Department
- Transfers regulatory authority of Cemetery Merchandise funds from the Banking Department to the Insurance Department
- This bill is a joint effort of both departments to streamline government functions because the Insurance Department already does financial examinations of funeral homes
SB 2043 – Life & Health Guaranty Fund Model Bill (Read the Entire Bill Here)
The bill passed the Senate 43-0 and passed the House 95-1. The Governor signed the bill on April 19, 2010. The bill is effective November 1, 2010.
- To accommodate the sensitive nature of some of the duties of the Life & Health Guaranty Board, the model allows a majority vote of the board to approve open meetings and open records.
- This protects the information of claimants, the competitive nature of the market and proprietary information that might otherwise be exposed
- In order to include the input of the public in the decisions of the Board, the model provides that two (2) members of the board shall be public members.
- This will give greater credence and agreement to settlement procedures and general operation of the Board and the fund because of the involvement of the public in its decisions
- In order to focus the emphasis of the fund on the core purposes of the fund, the model specifically prohibits use of guaranty funds for Medicare Part D Prescription Programs.
- From a consumer perspective, this ensures that funds are available to cover the material losses from potential major medical losses
- The model also provides that obligations that don’t materially affect the economic condition of the contract are not guaranteed
- This is another measure to focus the emphasis of the fund on the core purposes of the fund ─ to make sure that funds are available to cover material losses
- The model maintains the amounts payable for annuities (traditional annuities, retirement annuities, structured settlements) at $300,000
- The model requires the Commissioner to report to the Board when NAIC Insurance Regulatory Information System (IRIS) Ratios for an insurer cause her to believe that the company is impaired or insolvent and provides for a confidential process to report this information.
- This will help the Board better plan reactions and allow the Department to more proactively addresses troubled insurers
- In order to better facilitate the operation of the Board and the Fund, the model increases the administration assessment to participants from $150 per year to $300 per year
SB 2044 – Property & Casualty Guaranty Fund Model Bill (Read the Entire Bill Here)
The bill passed the Senate 43-0 and passed the House 64-32. The Governor signed the bill on April 20, 2010. The bill is effective November 1, 2010.
- Definition of policy obligations assumed by an insurer prior to final order of liquidation
- Clarifies what a “covered claim” shall include
- Defines what an “insolvent insurer” is
- Defines who an “insured” is
- Defines “member insurer” and when they cease to be a member
- Defines “person”
- Allows the board to act as a servicing facility for an entity with approval of the Commissioner
SB 2045 – Uniform Small Group Questionnaire Bill (Read the Entire Bill Here)
The bill passed the Senate 46-0 and passed the House 98-0. The Governor signed the bill on April 22, 2010. The bill is effective November 1, 2010.
- Requires the Insurance Commissioner to develop a uniform questionnaire for small employers applying for small group insurance
- This bill will help ease the process for applying for health insurance for small employers, reducing the number of forms and “red-tape” currently in place to get health insurance
- The bill prohibits denial of coverage for health benefits that are not related to autistic disorders
SB 2054 – Omnibus Bill (Read the Summary of the Bill Here or Read the Entire Bill Here)
The bill passed the House 90-3 and passed the Senate 43-2. The Governor signed the bill on May 6, 2010. The bill is effective November 1, 2010.
- Removes reimbursement cap on mammography screening
- Strengthens Commissioner’s inquiry authority of insurers and improves communication between insurer and insured
- Streamlines and cleans up some statutes for clarity
- Improves methods of PEO registration options
- Expands qualifications of those who apply for a bail bondsman’s license in certain cases
- Provides ability to require insurer submissions to be submitted electronically to reduce costs
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