HB17-1231

HB17-1231 - Market Conduct Examinations Insurance Companies

Passed/Signed into Law
Concerning a reorganization of statutes governing the authority of the commissioner of insurance to examine companies engaged in the business of insurance in this state.

Under current law, the commissioner of insurance (commissioner) is authorized to conduct financial examinations and market conduct examinations of companies engaged in the insurance business in Colorado. Financial examinations, which the commissioner conducts on every company domiciled in Colorado once every 5 years, are intended to ensure that regulated insurance companies have proper corporate governance and internal controls and are able to pay claims. Market conduct examinations are intended to ensure that regulated insurance companies are complying with applicable laws and rules and that policyholders, providers, and beneficiaries are treated equitably. Statutes pertaining to both financial examinations and market conduct examinations are intertwined and, in some cases, overlap and conflict.

Because of the repeal and relocation of market conduct provisions under sections 2 through 10 of the bill, section 1 of the bill consolidates and relocates provisions that apply generally to the commissioner and the division of insurance (division) regarding confidential treatment of documents the commissioner obtains during an investigation, the subpoena powers of the division, and the commissioner's ability to contract with experts in conducting an investigation.

Sections 2 through 10 separate the market conduct examination provisions from the financial examination provisions, repealing and relocating the market conduct examination provisions to a separate part and more clearly delineating the scope and functions of the 2 distinct types of examinations conducted by the commissioner.

With regard to market conduct reviews, section 10 also uses the term 'market conduct surveillance' and specifies the types of activities that includes, such as market analysis, interrogatories, and market conduct examinations.

Sections 11 through 16 make conforming amendments based on the repeal and relocation of the market conduct examination provisions.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

 

Latest update: June 1, 2017
06/01/2017 - Governor Signed
05/22/2017 - Sent to the Governor
05/19/2017 - Signed by the Speaker of the House
05/19/2017 - Signed by the President of the Senate
05/10/2017 - House Considered Senate Amendments - Result was to Concur - Repass
05/10/2017 - Senate Third Reading Passed - No Amendments
05/09/2017 - Senate Second Reading Special Order - Passed with Amendments - Committee, Floor
05/08/2017 - Senate Committee on State, Veterans, & Military Affairs Refer Amended to Senate Committee of the Whole
05/04/2017 - Senate Committee on State, Veterans, & Military Affairs Witness Testimony and/or Committee Discussion Only
04/21/2017 - Introduced In Senate - Assigned to State, Veterans, & Military Affairs
04/04/2017 - House Third Reading Passed - No Amendments
04/03/2017 - House Second Reading Passed with Amendments - Committee
03/30/2017 - House Committee on Business Affairs and Labor Refer Amended to House Committee of the Whole
03/23/2017 - House Committee on Business Affairs and Labor Witness Testimony and/or Committee Discussion Only
03/06/2017 - Introduced In House - Assigned to Business Affairs and Labor