HB 454 (BR 975) - C. Belcher
AN ACT relating to insurance accounting practices and procedures.
Amend KRS 304.2-065 to require the early warning analyst in the Department of Insurance to report annually, rather than biannually, to the General Assembly; amend KRS 304.2-080, 304.2-195, 304.2-270, 304.2-300, 304.2-360, 304.3-150, 304.8-010, 304.8-020, 304.8-040, 304.8-090, 304.8-095, 304.8-100, 304.8-110, 304.8-150, 304.8-170, 304.8-180, 304.8-190, 304.27-070, 304.28-070, 304.32-030, 304.32-140, 304.33-110, and 304.38-170 to make technical changes; amend KRS 304.3-110 to provide that only an insurer with a certificate of authority to sell life insurance may grant and issue annuity contracts; amend KRS 304.3-180 to prohibit an insurer from using the same accounting firm for preparing the audited financial statement for more than seven (7), rather than four (4), consecutive years; amend KRS 304.3-240 to require the annual statement of domestic insurers to contain original signatures; amend KRS 304.3-320 to require foreign life and health insurers domiciled in states without a guaranty fund to furnish the commissioner with a deposit of cash or publicly traded securities in the specified amounts; create a new section of Subtitle 6 of KRS Chapter 304 to define "accounting practices and procedures manual" and "SSAP"; amend KRS 304.6-010 to provide that collectible interest one hundred eighty (180) days past due on a mortgage loan in default is a nonadmitted asset; clarify what are nonadmitted and admitted assets; amend KRS 304.6-020 to specify what assets shall not be allowed in determination of the financial condition of an insurer; amend KRS 304.6-040 to require certain deferred tax liabilities to be charged against assets in determining the financial condition of an insurer; amend KRS 304.6-050 to provide for computation of unearned premium reserves; amend KRS 304.6-090 to require mortgage guaranty insurers to maintain a liability referred to as a statutory contingency reserve; amend KRS 304.6-100 on casualty insurance loss reserves to delete provision on minimum reserve requirements; amend KRS 304.6-180 on premium deficiency reserves of property and casualty insurers; amend KRS 304.13-390 to delete current language and provide that if the state fire marshal gives notice that any authorized insurer has failed to comply with the provisions of KRS 227.250 the commissioner may revoke or suspend the insurer's certificate of authority; amend KRS 304.24-300 to provide when a surplus note shall be reported as surplus and not debt; amend KRS 304.24-500 to provide for filing an application for redomestication and transfer of domicile; amend KRS 304.29-281 to specify statutory provisions that domestic, foreign, and alien societies are subject to for purposes of determining financial condition, market conduct, and business practices; amend KRS 304.30-060 to specify statutory provisions that premium finance companies are subject to for purposes of determining financial condition, market conduct, and business practices; create a new section of Subtitle 32 of KRS Chapter 304 to restrict activities of corporations whose certificates of authority have been suspended; amend KRS 304.32-210 to specify statutory provisions that nonprofit hospital, medical-surgical, dental, and health service corporations are subject to for purposes of determining financial condition, market conduct, and business practices; amend KRS 304.32-270 to subject nonprofit hospital, medical-surgical, dental, and health service corporations to the provisions of Subtitle 3 of KRS Chapter 304; amend KRS 304.38-120 to specify statutory provisions that health maintenance organizations are subject to for purposes of determining financial condition, market conduct, and business practices; amend KRS 304.38-130 to allow the commissioner to suspend or revoke the certificate of authority of a health maintenance organization on the grounds established in Subtitles 2 and 3 of KRS Chapter 304; amend KRS 136.410 to delete provision requiring a copy of the statement of all amounts paid to the bail bondsman to be filed with the commissioner when the bondsman files the report of assets and liabilities; amend KRS 431.510 to define "bail bondsman"; repeal KRS 304.8-060, 304.8-070, 304.13-043, 304.32-220, 304.32-230, 304.34-010, 304.34-020, 304.34-030, 304.34-040, 304.34-042, 304.34-045, 304.34-050, 304.34-060, 304.34-070, 304.34-075, 304.34-080, 304.34-090, 304.34-100, 304.34-110, 304.34-120, 304.34-130, 304.34-140, 304.34-160, and 304.99-030.
HB 454 - AMENDMENTS
HFA (1, C. Belcher) - Delete Section 3 of the Act; delete change to subsection (4) of Section 8 of the Act.
Feb 11-introduced in House
Feb 12-to Banking and Insurance (H)
Feb 18-posted in committee; posting waived
Feb 19-reported favorably, 1st reading, to Calendar
Feb 20-2nd reading, to Rules
Feb 24-posted for passage in the Regular Orders of the Day for Tuesday, February 25, 2003
Feb 28-recommitted to Appropriations and Revenue (H)
Mar 4-floor amendment (1) filed