1997
SENATE BILL 97061
BY SENATOR Matsunaka;
also REPRESENTATIVE Owen.
CONCERNING THE APPLICABILITY OF RULES GOVERNING THE
SUBMISSION OF ANNUAL FINANCIAL STATEMENTS BY INSURANCE COMPANIES.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 103208,
Colorado Revised Statutes, 1994 Repl. Vol., is amended BY THE
ADDITION OF A NEW SUBSECTION to read:
103208. Financial statements.
(7) (a) IN PREPARING THE STATEMENTS REQUIRED BY
SUBSECTION (1) OF THIS SECTION, ALL INSURANCE COMPANIES SHALL
FOLLOW THE INSTRUCTIONS, PROCEDURES, AND GUIDELINES OF THE NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS. IF THE INITIAL APPLICATION
OF ANY SUCH INSTRUCTION, PROCEDURE, OR GUIDELINE WOULD CAUSE A
REDUCTION IN THE TOTAL CAPITAL AND SURPLUS OF A DOMESTIC INSURER
OF TEN PERCENT OR MORE OR WOULD CAUSE THE CAPITAL AND SURPLUS
OF A DOMESTIC INSURER TO FALL TO OR BELOW THE COMPANY ACTION LEVEL
AS DEFINED BY THE COMMISSIONER BY RULE, SUCH INSURER MAY, WITHIN
THIRTY DAYS AFTER THE EFFECTIVE DATE OF SUCH INSTRUCTION, PROCEDURE,
OR GUIDELINE, FILE WITH THE COMMISSIONER A REQUEST TO PHASE IN
THE EFFECT OF THE INSTRUCTION, PROCEDURE, OR GUIDELINE OVER A
PERIOD NOT TO EXCEED THREE YEARS OR A TIME PERIOD APPROVED BY
THE COMMISSIONER.
(b) ANY REQUEST MADE PURSUANT TO PARAGRAPH
(a) OF THIS SUBSECTION (7) SHALL INCLUDE A COMPLETE ANALYSIS,
IN A FORM PRESCRIBED BY THE COMMISSIONER, OF THE IMPACT UPON THE
INSURER MAKING THE REQUEST THAT IS EXPECTED TO RESULT FROM APPLICATION
OF THE SUBJECT INSTRUCTION, PROCEDURE, OR GUIDELINE AND, IF A
PHASEIN IS REQUESTED, A DESCRIPTION OF THE INSURER'S PLAN
FOR THE PHASEIN PERIOD. THE COMMISSIONER SHALL NOT DENY
A REQUEST FOR A PHASEIN EXCEPT UPON NOTICE AND THE OPPORTUNITY
FOR A HEARING AS PROVIDED IN SECTION 244105, C.R.S.
(c) ANY REQUEST FOR A HEARING MADE PURSUANT
TO PARAGRAPH (b) OF THIS SUBSECTION (7) SHALL INCLUDE A DESCRIPTION
OF THE BASIS ON WHICH RELIEF IS SOUGHT. UPON RECEIVING SUCH A
REQUEST, THE COMMISSIONER SHALL, WITH REGARD TO THE INSURER MAKING
THE REQUEST, POSTPONE THE EFFECTIVE DATE OF THE SUBJECT INSTRUCTION,
PROCEDURE, OR GUIDELINE PENDING THE CONCLUSION OF THE HEARING
AND THE TAKING OF FINAL AGENCY ACTION THEREON. THE HEARING SHALL
COMMENCE WITHIN SIXTY DAYS AFTER THE COMMISSIONER RECEIVES THE
REQUEST AND SHALL BE CONDUCTED IN ACCORDANCE WITH SECTION 244105,
C.R.S.
SECTION 2. 106130
(2), Colorado Revised Statutes, 1994 Repl. Vol., is amended to
read:
106130. Laws applicable.
(2) Group captive insurance companies are subject to
the provisions of section 103208
(3) SECTION 103208 (3)
TO (7), part 2 of article 1 of this title, article 2 of this title,
and parts 8 and 14 of article 3 of this title.
SECTION 3. 1016111
(1), Colorado Revised Statutes, 1994 Repl. Vol., is amended to
read:
1016111. Annual statement
and reports. (1) Nonprofit
hospital, medicalsurgical, and health service corporations.
(a) All corporations subject to the provisions of this
part 1 and part 3 of this article doing business in this state
on July 1, 1967, or which may thereafter do business in this state,
shall make and file annually with the commissioner, on or before
the first day of March of each year, a statement under oath upon
a form prescribed by the commissioner stating the amount of all
membership dues or subscriber fees collected in this state or
from residents thereof by the corporation making such statement
during the year ending the last day of December next preceding;
the amounts actually paid during such year for hospital, medicalsurgical,
and other health services for the subscribers or members of the
corporation, and the amounts placed in established reserves for
cases billed but not yet paid, unreported and unbilled cases,
retroactive cost adjustments, membership dues or fees paid in
advance but not yet earned, and all other liabilities and obligations
required of domestic insurers which are consistent with the responsibilities
of such corporations. The annual statement made to the commissioner
pursuant to this subsection (1) shall at least include the substance
of that which is required by what is known as the convention blank
form for hospital, medical, and dental service or indemnity corporations
adopted from year to year by the national association of insurance
commissioners, including any instructions, procedures, and guidelines
not in conflict with any provision of this title for completing
the convention blank form.
(b) IN PREPARING THE STATEMENTS REQUIRED
BY PARAGRAPH (a) OF THIS SUBSECTION (1), ALL INSURANCE COMPANIES
SHALL FOLLOW THE INSTRUCTIONS, PROCEDURES, AND GUIDELINES OF THE
NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS. IF THE INITIAL
APPLICATION OF ANY SUCH INSTRUCTION, PROCEDURE, OR GUIDELINE WOULD
CAUSE A REDUCTION IN THE TOTAL CAPITAL AND SURPLUS OF A DOMESTIC
INSURER OF TEN PERCENT OR MORE OR WOULD CAUSE THE CAPITAL AND
SURPLUS OF A DOMESTIC INSURER TO FALL TO OR BELOW THE COMPANY
ACTION LEVEL AS DEFINED BY THE COMMISSIONER BY RULE, SUCH INSURER
MAY, WITHIN THIRTY DAYS AFTER THE EFFECTIVE DATE OF SUCH INSTRUCTION,
PROCEDURE, OR GUIDELINE, FILE WITH THE COMMISSIONER A REQUEST
TO PHASE IN THE EFFECT OF THE INSTRUCTION, PROCEDURE, OR GUIDELINE
OVER A PERIOD NOT TO EXCEED THREE YEARS OR A TIME PERIOD APPROVED
BY THE COMMISSIONER.
(c) ANY REQUEST MADE PURSUANT TO PARAGRAPH
(b) OF THIS SUBSECTION (1) SHALL INCLUDE A COMPLETE ANALYSIS,
IN A FORM PRESCRIBED BY THE COMMISSIONER, OF THE IMPACT UPON THE
INSURER MAKING THE REQUEST THAT IS EXPECTED TO RESULT FROM APPLICATION
OF THE SUBJECT INSTRUCTION, PROCEDURE, OR GUIDELINE AND, IF A
PHASEIN IS REQUESTED, A DESCRIPTION OF THE INSURER'S PLAN
FOR THE PHASEIN PERIOD. THE COMMISSIONER SHALL NOT DENY
A REQUEST FOR A PHASEIN EXCEPT UPON NOTICE AND THE OPPORTUNITY
FOR A HEARING AS PROVIDED IN SECTION 244105, C.R.S.
(d) ANY REQUEST FOR A HEARING MADE PURSUANT
TO PARAGRAPH (c) OF THIS SUBSECTION (1) SHALL INCLUDE A DESCRIPTION
OF THE BASIS ON WHICH RELIEF IS SOUGHT. UPON RECEIVING SUCH A
REQUEST, THE COMMISSIONER SHALL POSTPONE THE EFFECTIVE DATE OF
THE SUBJECT INSTRUCTION, PROCEDURE, OR GUIDELINE PENDING THE CONCLUSION
OF THE HEARING AND THE TAKING OF FINAL AGENCY ACTION THEREON.
THE HEARING SHALL COMMENCE WITHIN SIXTY DAYS AFTER THE COMMISSIONER
RECEIVES THE REQUEST AND SHALL BE CONDUCTED IN ACCORDANCE WITH
SECTION 244105, C.R.S.
SECTION 4. 1016421
(1), Colorado Revised Statutes, 1994 Repl. Vol., is amended to
read:
1016421. Statutory construction
and relationship to other laws. (1) Except
for sections 101102, 101121, 101122,
103118, 103128, AND 103208
(7), and parts 4 to 7 of article 3 of this title, and as otherwise
provided in this article, the provisions of the insurance law
and provisions of nonprofit hospital, medicalsurgical, and
health service corporation laws shall not be applicable to any
health maintenance organization granted a certificate of authority
under this part 4.
SECTION 5. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO