Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE AUTHORITY OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES TO UNDERWRITE INSURANCE IN COLORADO.

Summary of Assessment

            This bill deletes bank holding companies from the definition of "financial institutions" who may sell insurance, thereby enabling a nonbank subsidiary of a bank holding company to underwrite insurance in Colorado. Bank holding companies are defined under federal law, and nonbank subsidiaries of bank holding companies are currently not allowed to underwrite insurance under the Colorado insurance anti-affiliation law.

            The provisions of this bill will allow insurance companies (nonbank subsidiary) owned by a bank holding company to underwrite insurance in Colorado. The bill will not affect the Division of Insurance or the Division of Banking, Department of Regulatory Agencies or any other state agency or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Regulatory Agencies