Senator Hansen and Senator Roberts, co-prime bill sponsors, presented House Bill 23-1303 concerning several changes to the regulation of insurance regarding impaired or insolvent insurers including: changing the priority of distribution of insurance claims paid from an insurer's estate in the event of the insurer's liquidation. Specifically, class 1 distribution priority payments will include payments that an impaired or insolvent insurer owes to the risk adjustment program that are necessary to prevent another insurer from becoming impaired or insolvent. This adjustment is in effect through June 30, 2026. The bill also makes changes to the âLife and Health Insurance Protection Association Actâ to:
Â· add health maintenance organizations (HMOs) as members of the Colorado Life and Health Insurance Protection Association and subject HMOs to assessments from the association;
Â· allocate responsibility for long-term care insurance assessments between health insurance and life insurance association members; and
Â· specify that the act does not provide coverage to a person who acquires rights to receive, or to a payee or beneficiary that transfers its rights in, a structured settlement factoring transaction, as defined in federal law, regardless of when the transaction occurred.
Committee members asked the bill sponsors questions.