h_bus_2016a_2016-02-23t13:34:28z0 Hearing Summary

Date: 02/23/2016

01:34 PM -- SB 16-029



Representative Lawrence and Representative Duran, co-sponsors, introduced Senate Bill 16-029. Senate Bill 14-152 enacted model legislation adopted by the National Association of Insurance Commissioners (NAIC) that increased the authority of the Commissioner of Insurance over derivative transactions and holding company systems. Senate Bill 16-029 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. The commissioner can reduce a penalty if the insurer demonstrates that the penalty would constitute a financial hardship. The commissioner may promulgate rules and orders in order to implement the bill.



Representative Duran discussed amendment L.003 (Attachment A).



160223 AttachA.pdf



01:37 PM -- Jim Hall, American Council of Life Insurers (ACLI), testified in support of the bill. Mr. Hall provided the committee with a handout (Attachment B).



160223 AttachB.pdf



01:38 PM -- Virginia Morrison Love, Pinnacol Assurance, testified in support of the bill and the proposed amendment.



01:39 PM -- David Aspinwall, Great West Financial, testified in support of the bill. Mr. Aspinwall responded to questions from the committee.



01:43 PM -- Scott Lloyd and Peg Brown, Colorado Division of Insurance, responded to questions from the committee.



01:47 PM



The bill sponsors discussed amendment L.003.

01:48 PM



Representative Duran and Representative Lawrence made closing remarks on the bill.