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s_blt_2016a_2016-02-01t14:00:20z0 Hearing Summary

Date: 02/01/2016



Final

BILL SUMMARY for SB16-029



SENATE COMMITTEE ON BUSINESS, LABOR, & TECHNOLOGY


Votes: View--> Action Taken:
Adopt amendment L.002. The motion passed without o

Refer Senate Bill 16-029, as amended, to the Commi
Pass Without Objection

PASS







02:00 PM -- SB 16-029



Senators Heath and Scheffel introduced Senate Bill 16-029 concerning compliance with insurance model acts. Senate Bill 14-152 enacted model legislation adopted by the National Association of Insurance Commissioners (NAIC) that increased the authority of the state Commissioner of Insurance over derivative transactions and holding company systems. This bill adds authority for the commissioner to compel the production of information in a financial examination of an insurer.



This bill also adds requirements for certain Colorado-domiciled insurers to assess the adequacy of their risk management by conducting NAIC's Own Risk and Solvency Assessments (ORSA) and to file ORSA summary reports with the commissioner. Beginning in 2017, ORSAs must be conducted no less than annually or when there are significant changes to the risk profile of an insurer or insurer group. ORSA reports are not subject to the Colorado Open Records Act and must be kept confidential.



An insurer that fails to timely file its ORSA summary report is subject to a penalty of $200 for each day's delay up to a maximum penalty of $25,000. Senator Heath provided an amendment to the committee (Attachment A). Senators Heath and Scheffel responded to questions from the committee.



160201 AttachA.pdf160201 AttachA.pdf



02:05 PM --
David Aspinwall, Great West Financial, spoke in favor of the bill.



02:10 PM --
Becky Brooks, American Council of Life Insurers and Prudential Financial, spoke in favor of the bill. She provided a handout to the committee (Attachment B),



160201 AttachB.pdf160201 AttachB.pdf



02:11 PM --
Peg Brown and Scott Lloyd, Division of Insurance, responded to questions from the committee.



02:13 PM --
Michael Harper, Great West Financial, responded to questions from the committee.


BILL: SB16-029
TIME: 02:15:57 PM
MOVED: Heath
MOTION: Adopt amendment L.002. The motion passed without objection.
SECONDED:
VOTE
Baumgardner
Heath
Hodge
Jahn
Neville T.
Newell
Tate
Woods
Excused
Holbert
YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection




BILL: SB16-029
TIME: 02:16:49 PM
MOVED: Heath
MOTION: Refer Senate Bill 16-029, as amended, to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed on a vote of 8-0.
SECONDED:
VOTE
Baumgardner
Yes
Heath
Yes
Hodge
Yes
Jahn
Yes
Neville T.
Yes
Newell
Yes
Tate
Yes
Woods
Excused
Holbert
Yes
Final YES: 8 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS









02:17 PM



The committee adjourned.




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