HB 354 (BR 1216) - J. Gooch
AN ACT relating to insurance.
Amend KRS 304.13-011 on insurance rates to amend and create definitions; amend KRS 304.13-021 to exempt title insurance, liability self-insurance groups, and wet marine and transportation insurance from the provisions of subtitle 13; amend KRS 304.13-031 to clarify what constitute excessive rates, inadequate rates, and unfairly discriminatory rates; prohibit a risk classification from being based upon race, creed, national origin, or the religion of the insured; permit the commissioner to order a refund of excessive rates; amend KRS 304.13-041 to specify information the commissioner must use in determining the competitiveness of a market; repeal and reenact KRS 304.13-051 to require the filing of every manual, underwriting guideline, minimum premium, class rate, rating schedule or rating plan, every other rating rule, and all modifications; authorize the commissioner to require the rates be based upon the insurer's own loss, special assessment, and expense information; provide for filing of rates in a competitive market and in a noncompetitive market; amend KRS 304.13-057 to require rates to be based on Kentucky experience when actuarially credible; amend KRS 304.13-061 to authorize the commissioner to assure that the experience of all insurers is made available at least annually in such form and detail as necessary to aid in determining whether rating systems comply with standards of this subtitle; authorize the commissioner and every insurer, advisory organization, and statistical agent to exchange information and experience data with insurance supervisory officials, insurers, and advisory organizations in other states; repeal and reenact KRS 304.13-071 to authorize appeal of a filing rejected by the commissioner; allow the commissioner to order discontinuance of the use of a rate that no longer meets the requirements of this chapter; amend KRS 304.13-081 to authorize the commissioner to utilize, develop, or cause to be developed a consumer information system; repeal and reenact KRS 304.13-091 to prohibit any advisory organization, statistical agent, or form provider from providing any permitted service until it has obtained a license; provide that licenses are effective for one year unless revoked or suspended; amend KRS 304.13-111 to make it applicable to statistical agents; amend KRS 304.13-121 to provide powers of advisory organizations; create new sections of subtitle 13 of KRS Chapter 304 to designate powers of statistical agents; require advisory organizations to make certain filings with the commissioner; require workers' compensation insurers to adhere to a uniform classification system and uniform experience rating system filed with the commissioner; prohibit the willful withholding of information which will affect rates or premiums or knowingly giving false or misleading information to the commissioner, any statistical agent, any advisory organization, or any insurer; amend KRS 304.13-131 to prohibit advisory organizations, in addition to insurers, from making any arrangement to unreasonably restrain trade or lessen competition; prohibit an insurer or advisory organization from attempting to monopolize an insurance market and from engaging in a boycott of a market; amend KRS 304.13-141 to authorize the commissioner to examine any statistical agent and any form provider; require statistical agents to maintain reasonable records; amend KRS 304.13-151 to provide for regulation of joint reinsurance pools; require a residual market mechanism to be submitted to the commissioner; amend KRS 304.13-350, 304.13-355, 304.13-360, and 304.13-370 on fire protection classifications to make technical change; KRS 304.14-120 to require property and casualty insurers to file forms requiring an insurer to reject coverage, remove coverage, or reduce coverage; require every advisory organization and form provider to file for approval every property and casualty policy form and endorsement.
HB 354 - AMENDMENTS
HCS - Retain original provisions but delete Sections 4, 5, 6, and 8; delete definitions of "contingencies" and "underwriting guideline" and change definition of "prospective loss costs" and "supplementary rating information"; delete new subsection (1) and restore subsection (2) in Section 3; restore subsection (1) in Sections 7 and 9; provide that at the request of a licensed advisory organization, statistical agent, or form provider licenses may be renewed on an annual basis; provide that licenses remain in effect for one year unless licensee fails to pay fees for continuance or renewal, or the licensee withdraws from the state, or the license is suspended or revoked; require the commissioner to establish by administrative regulation a written summary of information that must be included in a license application; make technical changes
SCS - Amend to create new sections of Subtitle 9 of KRS Chapter 304 to define terms; to permit the commissioner to issue a license to a vehicle rental company to offer and to sell insurance in connection with and incidental to a rental vehicle transaction, and permits commissioner to take administrative action and impose penalties for violations by a licensee.
SCA (1, T. Buford) - Amend KRS 304.2-150 to provide that records received in confidence from insurance supervisory officials of other states or countries are not open to the public; repeal KRS 304.24-410 which pertains to the acquisition of an insurer's securities.
SFA (2, D. Seum) - Make technical corrections.
Jan 13-introduced in House
Jan 14-to Banking and Insurance (H)
Jan 24-posted in committee
Feb 24-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 25-2nd reading, to Rules
Feb 29-posted for passage in the Regular Orders of the Day for Wednesday, March 1, 2000
Mar 1-3rd reading, passed 89-7 with Committee Substitute
Mar 2-received in Senate
Mar 6-to Banking and Insurance (S)
Mar 21-reported favorably, 1st reading, to Consent Calendar with Committee Substitute, committee amendment (1)
Mar 22-2nd reading, to Rules; posted for passage in the Consent Orders of the Day for Friday, March 24, 2000; floor amendment (2) filed to Committee Substitute
Mar 24-taken from the Consent Orders of the Day, placed in the Regular Orders of the Day
Mar 27-3rd reading, passed 36-0 with Committee Substitute, committee amendment (1), floor amendment (2) ; received in House; posted for passage for concurrence in Senate Committee Substitute, committee amendment (1), floor amendment (2)
Mar 28-House concurred in Senate Committee Substitute, committee amendment (1), floor amendment (2) ; passed 92-1
Mar 29-enrolled, signed by each presiding officer, delivered to Governor
Apr 7-signed by Governor (Acts ch. 380)