SF0028 - Insurance code amendments.
|
2001 |
State of Wyoming |
01LSO-0179 |
SENATE FILE NO. SF0028
Insurance code amendments.
Sponsored by: Joint Corporations, Elections and Political
Subdivisions
Interim Committee
A BILL
for
1 AN ACT relating to
insurance; specifying requirements for
2 accounting
practices and procedures for financial reporting
3 by
insurance companies and other insuring entities;
4
modifying allowable assets and other determinations
5
relating to insurance companies' and other insuring
6
entities' financial status by requiring conformance with
7
National Association of Insurance Commissioners' standards;
8
authorizing the insurance commissioner to receive and share
9
confidential and privileged materials as specified; making
10 conforming amendments; and providing for an
effective date.
11
12 Be It Enacted by the Legislature of the State of Wyoming:
13
14 Section
1. W.S.
26-1-102(a) by creating a new
15 paragraph (xxxv), 26-2-113 by
creating a new subsection
16 (d), 26-2-121(k) and (m), 26-3-123(d),
26-3-203,
Page 1
1 26-3-304(b)(vi)(intro),
26-3-401(d)(i), 26-6-101(a)(intro),
2
26-6-102(a)(intro), 26-6-103(a)(intro), 26-6-106,
3
26-6-208(e)(vii)(intro), 26-6-301(a)(iii), 26-6-302(a) and
4
(b), 26-6-303(a)(intro), 26-6-304, 26-7-110(a)(i),
5
26-23-102(c), 26-23-309(f), 26-26-120(a),
6
26-27-117(a)(intro), 26-29-226(a), 26-34-110(a) and (b)(i),
7
26-34-130(d) and 26-44-110 are amended to read:
8
9 26-1-102. Definitions.
10
11 (a) As used in this act:
12
13 (xxxv) "Fair value", "fair market value" or
14 "market
value" mean fair value as determined pursuant to
15 the
most recent National Association of Insurance
16 Commissioners'
accounting practices and procedures manual.
17
18 26-2-113. Records and other papers; generally.
19
20 (d) In order to assist in the performance of his
21 duties
under this code, the commissioner may:
22
23 (i) Share documents, materials or other
24 information,
including confidential and privileged
Page 2
1 documents, materials or information, with other state,
2 federal and international regulatory
agencies, with the
3 National Association of Insurance
Commissioners, its
4 affiliates or subsidiaries, and with
state, federal and
5 international law enforcement
authorities, provided the
6 recipient agrees to maintain the
confidentiality and
7 privileged status of any document,
material or other
8 information;
9
10 (ii) Receive documents, materials or
11 information,
including otherwise confidential and
12 privileged
documents, materials or information, from the
13 National
Association of Insurance Commissioners, its
14 affiliates
or subsidiaries and from regulatory and law
15 enforcement
officials of other foreign or domestic
16 jurisdictions,
and shall maintain as confidential or
17 privileged
any document, material or information received
18 with
notice or the understanding that it is confidential or
19 privileged
under the laws of the jurisdiction that is the
20 source
of the document, material or information; and
21
22 (iii) Enter into agreements governing sharing
23 and
use of information consistent with this subsection.
24
Page 3
1 26-2-121. Examinations; report; contents.
2
3 (k) Nothing contained in W.S. 26-2-116
through
4 26-2-124
shall require the department to disclose any
5
information or records which would indicate or show the
6
existence or content of any investigation or activity of a
7
criminal justice agency. Nothing contained in this code
8
shall prevent or be construed as prohibiting the
9
commissioner from disclosing the content of an examination
10 report, preliminary examination report or
results, or any
11 matter relating thereto, to the insurance department of
this
or any other state or country, or to law enforcement
officials
of this or any other state or agency of the
federal
government at any time, so long as the agency or
office
receiving the report or matters relating thereto
agrees
in writing to hold it confidential and in a manner
consistent
with this act as authorized by and in
accordance
18 with
the provisions of W.S. 26-2-113(d). In the
event the
19 commissioner
determines that regulatory action is
20 appropriate as a
result of any examination, he may initiate
21 any proceedings or
actions as provided by law. The
22 provisions of W.S.
26-2-116 through 26-2-124 with regard to
23 release of
information shall prevail should any conflict
24 arise between this
act and W.S. 16-4-201 through 16-4-205.
Page 4
1
2 (m) All working papers, recorded
information,
3
documents and copies thereof produced by, obtained by or
4
disclosed to the commissioner or any other person in the
5
course of an examination made under W.S. 26-2-116 through
6 26-2-124
shall be given confidential treatment and are not
7
subject to subpoena and shall not be made public by the
8
commissioner or any other person, except to the extent
9
provided in subsections (j) and (k) of this section. Access
may
also be granted to the National Association of
Insurance
Commissioners. The parties shall agree
in
writing
prior to receiving the information to provide to it
the
same confidential treatment as required by this
section,
unless the prior written consent of the insurer to
which
it pertains has been obtained.
16
17
26-3-123. Annual and
quarterly statement; required;
18 form; verification; failure to file.
19
20 (d) All annual
and quarterly statements filed
21 pursuant to this section shall be completed pursuant to the
22 most recent
National Association of Insurance
23 Commissioners'
accounting practices and procedures manual
24 and
accompanied by a computer diskette containing the same
Page 5
1
information as the statement. The commissioner may specify
2 the
size and format of the computer diskette.
The
3
commissioner may refuse to continue or may suspend or
4
revoke the certificate of authority of any insurer failing
5 to
file its annual or quarterly statement when due.
6
7 26-3-203. Confidentiality.
8
9 All
financial analysis ratios and examination synopsis
10 concerning insurance companies that are
submitted to the
11 department by the National Association of
Insurance
12 Commissioners' Insurance Regulatory
Information System are
13 confidential and shall not be disclosed by
the department
14 except as
authorized by and in accordance with the
15 provisions
of W.S. 26-2-113(d).
16
17
26-3-304. Contents of
annual audited financial
18 report.
19
20 (b) The
annual audited financial report shall include
21 the following:
22
23 (vi) Notes to
financial statements. The notes
24 shall be those required by the appropriate
National
Page 6
1
Association of Insurance Commissioners' annual statement
2
instructions and any other notes required by
generally
accepted accounting principles and the most recent National
4 Association of Insurance Commissioners' accounting
5 practices and procedures manual. The notes shall also
7
8 26-3-401. Report of material transactions.
9
10 (d) All
reports obtained by or disclosed to the
11 commissioner pursuant to this article shall
be given
12 confidential treatment, and shall not be
made public by the
13 commissioner, the National Association of
Insurance
14 Commissioners, or any other person, except:
15
16 (i) To insurance
departments of other states
18 provisions
of W.S. 26-2-113(d);
19
20 26-6-101. Assets allowed.
21
22 (a) In
any determination of an insurer's financial
23 condition, only the following insurer owned
assets set
24 forth
and allowed in the most recent National Association
Page 7
1 of Insurance Commissioners' accounting practices and
2 procedures manual or authorized in
accordance with this
3 section shall be allowed:
as assets. Assets not
4 inconsistent with this article shall
be allowed at values
5 the commissioner determines, if he
deems them available for
6 the payment of losses and claims.
7
8 26-6-102. Assets not allowed.
9
10 (a) In
addition to assets impliedly excluded by the
11 most
recent National Association of Insurance
12 Commissioners'
accounting practices and procedures manual
13 pursuant
to W.S. 26-6-101, the following are not
allowed as
14 assets in any
determination of an insurer's financial
15 condition:
16
17 26-6-103. Liabilities generally.
18
19 (a) In
any determination of an insurer's financial
20 condition, capital stock and liabilities to
be charged
21 against its assets include the capital stock and liability
22 items
set forth in the most recent National Association of
23 Insurance
Commissioners' accounting practices and
24 procedures
manual and the following:
Page 8
1
2 26-6-106. Unearned premium reserve; marine and
3 transportation
insurance.
4
5 As
to marine and transportation insurance, the entire
amount of premiums on trip risks not
terminated are deemed
unearned. The commissioner may
require the insurer to carry
a reserve equal to one hundred
percent (100%) of premiums
on trip risks written during the
month ended as of the date
of
statement unearned premium reserve shall
be determined
11 pursuant
to the most recent National Association of
12 Insurance
Commissioners' accounting practices and
13 procedures
manual.
14
15 26-6-208. Actuarial opinion of reserves.
16
17 (e) Every
opinion shall be governed by the following
18 provisions:
19
20 (vii) Any memorandum in support of the
opinion,
21 and any other material provided by the
insurer to the
22 commissioner in connection with the opinion,
shall be kept
23 confidential by the commissioner, may be shared as
24 authorized
by and in accordance with the provisions of W.S.
Page 9
1 26-2-113(d), and shall
not be made public other than for
2 the
purpose of defending an action seeking damages from any
3
person by reason of any action required by this section or
4 by
regulations promulgated under this section.
Once any
5
portion of the confidential memorandum is cited by the
6
insurer in its marketing or is cited before any
7
governmental agency other than a state insurance department
8 or
is released by the insurer to the news media, no portion
9 of
the memorandum shall be confidential. The memorandum or
10 other material may otherwise be released by
the
11 commissioner:
12
13
26-6-301. Valuation of
bonds and other debt
14 securities.
15
16 (a) The
commissioner may, by rule or regulation,
17 require that any bond or other evidence of
debt held by an
18 insurer be valued in accordance with the
most recent
19 published valuation standards of the
National Association
20 of Insurance Commissioners. Any bonds or other evidences
21 of debt as to which the National Association
of Insurance
22 Commissioners has not published valuation
standards in its
23 valuations of securities manual, if amply
secured and not
Page 10
1 in
default as to principal or interest, shall be valued as
2
follows:
3
4 (iii) Purchase price shall in no case
be taken
5 at a
higher figure than the actual market fair value at the
6
time of acquisition regardless of how acquired, plus actual
7
brokerage, transfer, postage or express charges paid in the
8
acquisition of the securities;
9
10 26-6-302. Valuation of other securities.
11
12 (a) The
commissioner may, by rule or regulation,
13 require that securities other than
securities referred to
14 in W.S. 26-6-301 and except as provided in
W.S.
15 26-16-502(a)(iv), held by an insurer, be
valued in
16 accordance with the most recent published
valuation
17 standards of the National Association of
Insurance
18 Commissioners. At the commissioner's
discretion, securities
19 as to which the National Association of
Insurance
20 Commissioners has not published valuation
standards shall
21 be valued at their market fair
value, or at their appraised
22 value or at prices the commissioner
determines as
23 representing their fair market value.
24
Page 11
1 (b) Preferred or guaranteed stocks or
shares while
2
paying full dividends may be carried at a fixed value
3
instead of market fair value at the commissioner's
4
discretion and in accordance with a method of computation
5 he
approves.
6
7 26-6-303. Valuation of real and personal property.
8
9 (a) All real property shall be valued
at the lesser
of:
as set forth in the most recent National
Association of
11 Insurance
Commissioners' accounting practices and
12 procedures
manual.
13
14 26-6-304. Valuation of purchase money mortgages.
15
16 Purchase money mortgages on real property referred to in
W.S.
26-6-303(a) shall be valued in an amount not exceeding
the
acquisition cost of the real property covered thereby
or
ninety percent (90%) of the fair value of the real
property,
whichever is less accordance with the
most recent
21 National
Association of Insurance Commissioners' accounting
22 practices
and procedures manual.
23
24 26-7-110. Miscellaneous loans and investments.
Page 12
1
2 (a) An insurer may make loans or
investments not
3
otherwise expressly permitted under this chapter, in
4
aggregate amounts not over five percent (5%) of the
5
insurer's assets and not over one percent (1%) of those
6
assets as to any one loan or investment, if the loan or
7
investment fulfills the requirements of W.S. 26-7-103 and
8
otherwise qualifies as a sound investment. No such loan or
9
investment shall be represented by:
10
11 (i) Any item described in excluded under W.S.
12 26-6-102 or any loan or investment otherwise
expressly
13 prohibited;
14
15
26-23-102. Adjuster's
reports of overinsurance and
16 causes of fire; reports deemed privileged communications.
17
18 (c) Any
report submitted to the commissioner under
19 this section, together with any accompanying
information,
20 document, record or statement, is an
absolutely privileged
21 communication. The report may be disclosed as
authorized
22 by
and in accordance with the provisions of W.S.
23 26-2-113(d).
24
Page 13
1 26-23-309. Reinsurance reserve.
2
3 (f) A title insurer shall release
from the
4
reinsurance reserve a sum equal to ten percent (10%) of the
amount added to the reserve during a
calendar year on July
1 of each of the five (5) years
following the year in which
the sum is added, and shall release
from the reinsurance
reserve a sum equal to three and
one-third percent (3 1/3%)
of the amount added to the reserve
during that year on each
succeeding
July 1 until the entire amount for that year is
released
the appropriate amount as set forth in the most
12 recent
National Association of Insurance Commissioners'
13 accounting
practices and procedures manual. The amount of
14 the reinsurance
reserve or similar unearned premium reserve
15 maintained before May 27, 1983 July 1,
2001, shall be
16 released in
accordance with the law in effect at the time
17 such reserves
became effective.
18
19
26-26-120. Annual
statement; required; preparation;
20 filing; fee.
21
22 (a) The
president and secretary of the insurer shall
23 prepare, affirm under oath, affix the
corporate seal
24 thereto and on or before March 1 each year
file with the
Page 14
1
commissioner, on forms the commissioner prescribes, an
2
annual statement for the immediately preceding calendar
3
year and showing the condition of the insurer as of
4
December 31 of that year. The forms shall be
completed
5 pursuant to the most recent National
Association of
6 Insurance Commissioners' accounting
practices and
7 procedures manual.
8
9 26-27-117. Determining financial condition of
10 reciprocal insurer.
11
12 (a) In
determining the financial condition of a
13 reciprocal insurer the commissioner shall
apply the
14 following rules: set forth in the most
recent National
15 Association
of Insurance Commissioners' accounting
16 practices
and procedures manual.
17
18 26-29-226. Reports.
19
20 (a) Every
society transacting business in this state
21 shall annually, on or before March 1, unless
for cause
22 shown the time has been extended by the
commissioner, file
23 with the commissioner a true statement of
its financial
24 condition, transactions and affairs for the
preceding
Page 15
1
calendar year and pay a two hundred fifty dollar ($250.00)
2
filing fee. The statement shall be in general form and
3
context as approved by the National
Association of
4 Insurance Commissioners
for fraternal benefit societies and
5 as
supplemented by additional information required by the
6
commissioner. The
statement shall be completed pursuant to
7 the most recent National Association
of Insurance
8 Commissioners' accounting practices
and procedures manual.
9
10 26-34-110. Annual report.
11
12 (a) Each
health maintenance organization, annually,
13 on or before March 1, shall file with the
commissioner,
14 with a copy to the administrator, a report
verified by at
15 least two (2) organization principal
officers and covering
16 the immediately preceding calendar year.
Each health
17 maintenance organization shall file with the
commissioner
18 on a quarterly basis a statement of its financial
condition
19 for the preceding quarter. Each quarterly
statement shall
20 be filed with the commissioner on or before
forty-five (45)
21 days from the end of the quarter being
reported. The
22 reports and statements shall be on forms the
commissioner
23 prescribes and shall be completed pursuant to the most
Page 16
1 recent National Association of Insurance Commissioners'
2 accounting practices and procedures
manual.
3
4 (b) The health maintenance
organization shall file on
5 or
before March 1, unless otherwise stated:
6
7 (i) Audited
financial statements in accordance
8 with the provisions of W.S. 26-3-301
through 26-3-314 on or
9
before June 1;
10
11 26-34-130. Confidentiality of medical information.
12
13 (d) The
information considered by a health care
14 review committee and the records of its
actions and
15 proceedings shall be confidential and not
subject to
16 subpoena or order to produce except in
proceedings before
17 the appropriate state licensing or
certifying agency, or in
18 an appeal, if permitted, from the
committee's findings or
19 recommendations. The information shall not be shared
20 pursuant
to W.S. 26-2-113(d). No member of a health
care
21 review committee, or officer, director or
other member of a
22 health maintenance organization or its staff
engaged in
23 assisting such committee, or any person
assisting or
24 furnishing information to such committee may
be subpoenaed
Page 17
1 to
testify in any judicial or quasi-judicial proceeding if
2 the
subpoena is based solely on such activities.
3
Information considered by a health care review committee
4 and
the records of its actions and proceedings which are
5
used pursuant to this subsection by a state licensing or
6
certifying agency or in an appeal shall be kept
7
confidential and shall be subject to the same provision
8
concerning discovery and use in legal actions as are the
9
original information and records in the possession and
10 control of a health care review committee.
11
12 26-44-110. Confidential treatment.
13
14 All information, documents and copies of the
documents and
15 information obtained by or disclosed to the
commissioner or
16 any other person in the course of an
examination made
17 pursuant to W.S. 26-44-109 and all
information reported
18 pursuant to W.S. 26-44-104 through 26-44-108
shall be
19 confidential, shall not be subject to
subpoena and shall
20 not be made public disclosed by the commissioner, the
21 National Association of Insurance
Commissioners, or any
22 person, except to insurance departments of other states and
except as provided by W.S. 26-2-112(b)
authorized by and in
24 accordance
with the provisions of W.S. 26-2-113(d), without
Page 18
1 the prior written consent of the insurer to which the
2
information pertains. The commissioner, after giving the
3
insurer and its affiliates notice and opportunity to be
4
heard, may determine that the interest of policyholders,
5
shareholders or the public will be served by the
6
publication of the information, in which event he may
7
publish all or any part of the information as he deems
8
appropriate.
9
10 Section 2. W.S. 26-3-304(b)(vi)(B),
26-6-101(a)(i)
11 through (xiv), 26-6-102(a)(ii)
through (v), 26-6-303(a)(iv)
12 and (v) and 26-27-117(a)(i) through
(vii) are repealed.
13
14 Section 3. This act is effective July 1, 2001.
15
16 (END)
Page 19