Regulation of insurance companies - corporate governance annual disclosures. The act establishes, with amendments, certain model laws of the National Association of Insurance Commissioners concerning corporate governance annual disclosures (CGADs) by insurers and insurance groups (insurers). On June 1, 2020, and on June 1 of each year thereafter, an insurer shall submit to the commissioner of insurance (commissioner) a CGAD that contains sufficient information to permit the commissioner to gain and maintain an understanding of the insurer's corporate governance framework.
The act establishes confidentiality requirements for the commissioner and any third-party consultants retained by the commissioner.
The act states that any insurer that fails, without just cause, to timely file a CGAD shall pay, after notice and a hearing, a penalty of $200 for each day's delay. The maximum penalty is $25,000.
The act allows the commissioner to act as the group-wide supervisor for an internationally active insurance group or to designate or acknowledge another regulatory official as the group-wide supervisor for an internationally active insurance group that:
- Does not have substantial insurance operations in the United States;
- Has substantial insurance operations in the United States, but not in Colorado; or
- Has substantial insurance operations in the United States and in Colorado, but the commissioner has determined pursuant to certain criteria that the other regulatory official is the appropriate group-wide supervisor.
The act describes certain permissible supervisory activities for the commissioner to perform while acting as a group-wide supervisor of an internationally active insurance group.
(Note: This summary applies to this bill as enacted.)