Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING RATE FILING REQUIREMENTS FOR INSURERS PROVIDING COVERAGE TO EXEMPT COMMERCIAL POLICYHOLDERS.

Summary of Assessment

            This bill will exempt insurers selling property and casualty insurance to certain commercial insurance policyholders, namely certain policyholders employing personnel specializing in insurance practices and risk management, from rate regulation and approval requirements, and from form certification requirements of the Division of Insurance, Department of Regulatory Agencies. The bill requires the division to promulgate rules defining an exempt commercial policyholder and recommends that the division receive suggestions from risk management professionals, insurance managers or buyers, insurance representatives, and qualified insurance consultants in creating such rules. The bill would become effective January 1, 2000, unless a referendum petition is filed within ninety days following the adjournment of the Legislature, and approved by the voters.

            Any costs to the division to promulgate the rules required to define “an exempt commercial policyholder” will be offset by a reduction in the workload of the division related to rate filings and form certifications for those commercial policyholders exempted by the bill. The provisions of the bill will not have a fiscal impact on any other state agency, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Regulatory Agencies