Final
Division of Insurance Certificates of Authority

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes:
Action Taken:
moved to recommend that the bill concerning the suPASS


10:01 AM -- Sunset Review of the Division of Insurance Certificates of Authority for Health and Life Insurers

Mr. Harrelson explained the functions of the Division of Insurance related to the issuance of certificates of authority for health and life insurance and explained the recommendations in the report. He explained the changed sunset process that is being recommended in the bill. A copy of the sunset review entitled "The Functions of the Division of Insurance Related to the Issuance of Certificates of Authority for Health and Life Insurance " is available on-line at: http://www.dora.state.co.us/opr/archive/2005HealthandLifeInsuranceProviders.pdf, and a copy of the draft bill that the committee would be reviewing containing the recommendations in the sunset report is appended as Attachment H.

Representative Marshall asked for more explanation of recommendation #2. Representative Paccione asked about how many in-state versus foreign companies are regulated based on one of the quick facts in the report. Mr. Harrelson stated that there was a typo in the report.


10:11 AM

Representative Butcher asked about the specifics of recommendation #1. She expressed concern with the new system the bill is setting up to sunset the functions in the future. Mr. Harrelson responded and clarified that the point in the report was that the sunset review function was too restrictive as to be very helpful.


10:20 AM

Mr. Harrelson clarified the new sunset for certificates of authority and the other components the sunset would review. Representative Carroll asked for more specifics abut what other functions would be included in the sunset. There was considerable discussion.


10:25 AM

Debbie Hulstrom, Division of Insurance, came to the table to clarify that the draft bill is seeking to expand the sunset review process to include not just the issuance of certificates of authority, but to include market conduct, issuance of policies, and others regulations as well.. The committee questioned Ms. Hulstrom.


10:32 AM

Representative Butcher asked that a bill just continuing the existing sunset process of certificates of authority be drafted rather than including all of the recommendations in a draft bill. There was discussion. Representative Marshall suggested that the draft bill before the committee today be moved forward, and then encouraged the members to work on amendments for when the bill is introduced during session.
BILL:Division of Insurance Certificates of Authority
TIME: 10:36:15 AM
MOVED:Paccione
MOTION:moved to recommend that the bill concerning the sunset review of the Division of Insurance's functions relating to the issuance of certificates of authority for health and life insurers be drafted and introduced in the 2006 session. The motion passed on an 12-0 roll call vote. Chairman Marshall indicated that she would be the prime House sponsor of the bill. Co-sponsors are: Representatives Coleman and Paccione.
SECONDED:Coleman
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Absent
Cerbo
Yes
Marshall
Yes
Final YES: 12 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: PASS



10:38 AM

Recess.