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

Date: 02/01/2016

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.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.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.

02:17 PM



The committee adjourned.