Full Text of SB1723 100th General Assembly
SB1723sam002 100TH GENERAL ASSEMBLY | Sen. Antonio Muñoz Filed: 3/15/2017
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| 1 | | AMENDMENT TO SENATE BILL 1723
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1723 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Insurance Industry Innovation Act. | 6 | | Section 5. Definitions. In this Act: | 7 | | "Covered person" includes an individual, company, | 8 | | association, organization, partnership, business trust, | 9 | | corporation, and every form of legal entity that offers or | 10 | | intends to offer an insurance innovation by submitting a | 11 | | petition to the Department of Insurance. | 12 | | "Department" means the Department of Insurance. | 13 | | "Deputy Director" means the Deputy Director of the | 14 | | Innovation Division of the Department of Insurance. | 15 | | "Director" means the Director of Insurance. | 16 | | "Enforceable compliance agreement" means a contractual |
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| 1 | | agreement described in subsection (a) of Section 25. | 2 | | "Insurance innovation" means an innovative service or | 3 | | product that is or may be subject to regulation by the | 4 | | Department of Insurance. | 5 | | "Innovation Division" means the Innovation Division in the | 6 | | Department of Insurance. | 7 | | Section 10. Innovation Division. | 8 | | (a) Subject to appropriation, the Department shall | 9 | | establish an Innovation Division to promote insurance product | 10 | | innovations and to assist a covered person whose petition has | 11 | | been approved under Section 20. | 12 | | (b) The Director shall appoint an individual to serve as | 13 | | the Deputy Director of the Innovation Division. | 14 | | (c) The duties of the Deputy Director shall include: | 15 | | (1) supporting the Department in the development of | 16 | | insurance innovations; and | 17 | | (2) establishing procedures to reduce the time and cost | 18 | | of offering an insurance innovation to the public and | 19 | | enable greater access to insurance innovations. | 20 | | (d) With respect to a covered person whose petition has | 21 | | been approved under Section 20, the Insurance Division shall: | 22 | | (1) work with the covered person to address issues of | 23 | | how existing regulatory frameworks apply to the insurance | 24 | | innovation that is the subject of the petition; and | 25 | | (2) assist the covered person in complying with the |
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| 1 | | requirements of State statutes and rules adopted by the | 2 | | Department that apply to the insurance innovation. | 3 | | Section 15. Petition to the Department. | 4 | | (a) A covered person may submit a petition to the | 5 | | Department, through the Innovation Division, in such form and | 6 | | in such manner as the Innovation Division may require, to | 7 | | request to enter into an enforceable compliance agreement | 8 | | pursuant to Section 25 with the Department with respect to an | 9 | | insurance innovation the covered person offers or intends to | 10 | | offer. | 11 | | (b) A petition submitted under this Section, shall | 12 | | demonstrate that the insurance innovation: | 13 | | (1) would serve the public interest; | 14 | | (2) improves access to insurance products or services; | 15 | | and | 16 | | (3) does not present systemic risk to the State and | 17 | | promotes consumer protection. | 18 | | (c) One or more covered persons that offers or intends to | 19 | | offer similar insurance innovations may jointly submit a | 20 | | petition under this Section. | 21 | | (d) The Department shall maintain the confidentiality of | 22 | | any nonpublicly available data or information in any petition | 23 | | submitted under this Section. The Department shall give | 24 | | reasonable consideration to maintaining the confidentiality of | 25 | | data or information identified by the covered person in the |
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| 1 | | petition submitting under this Section as nonpublicly | 2 | | available data or information. | 3 | | Section 20. Department determination of petition. | 4 | | (a) No later than 60 days after receipt of a petition under | 5 | | Section 15, the Director shall complete a review of the | 6 | | petition and notify the covered person, in writing, of the | 7 | | Department's determination of the petition. | 8 | | (b) If the covered person submitting the petition meets the | 9 | | requirements of Section 15, the Department shall: | 10 | | (1) approve the petition; and | 11 | | (2) enter into an enforceable compliance agreement | 12 | | with the covered person in accordance with the requirements | 13 | | of Section 25. | 14 | | (c) If the Department rejects a petition, the Director | 15 | | shall provide the covered person with a written notice | 16 | | explaining the reason for rejecting the petition, including: | 17 | | (1) an identification of the rules of the Department or | 18 | | State statutes applicable to the covered person with | 19 | | respect to the insurance innovation; and | 20 | | (2) a description of: | 21 | | (A) any beneficial effects, including an | 22 | | identification of persons likely to benefit, from | 23 | | rejecting the petition; | 24 | | (B) any potential costs, including an | 25 | | identification of persons likely to bear the costs, of |
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| 1 | | rejecting the petition; and | 2 | | (C) the baseline used by the Department to measure | 3 | | the likely economic consequences of rejecting the | 4 | | petition. | 5 | | (d) No later than 90 days after receiving a notice of | 6 | | disapproval, a covered person may revise and resubmit a | 7 | | petition to the agency under Section 15. | 8 | | Section 25. Enforceable compliance agreement. | 9 | | (a) If the Department approves a petition under Section 20, | 10 | | the covered person may enter into an enforceable compliance | 11 | | agreement with the Department, which shall include the terms | 12 | | under which the covered person may develop or offer the | 13 | | approved insurance innovation to the public and any | 14 | | requirements of the covered person and the Department with | 15 | | respect to the insurance innovation. | 16 | | (b) The Department, by rule, may establish requirements | 17 | | relating to enforceable compliance agreements that include, | 18 | | but are not limited to: | 19 | | (1) procedures for modifying the terms of the | 20 | | agreement; | 21 | | (2) consequences for failure to comply with the terms | 22 | | of the agreement; | 23 | | (3) a compliance examination process that solicits | 24 | | feedback from other agencies on the agreement and occurs | 25 | | not less frequently than annually; |
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| 1 | | (4) a termination date for the agreement; | 2 | | (5) procedures for extending the termination date; | 3 | | (6) procedures for judicial review; and | 4 | | (7) procedures for maintaining the confidentiality of | 5 | | any information disclosed to the Department in making the | 6 | | agreement. | 7 | | (c) This Act is controlling to the extent of any conflict | 8 | | of statutory provisions of laws now in force or hereafter | 9 | | enacted. | 10 | | Section 30. Report to the General Assembly. No later than | 11 | | one year after the effective date of this Act, and annually | 12 | | thereafter, the Department shall submit to the General Assembly | 13 | | a report on the aggregate impact of enforceable compliance | 14 | | agreements entered into under this Act, which shall include: | 15 | | (1) the number and characteristics of the agreements; | 16 | | (2) the most innovative and least burdensome tools that | 17 | | the Innovation Division has implemented for achieving | 18 | | regulatory ends; | 19 | | (3) the existing State laws, rules, or practices that | 20 | | the Department identifies as the most burdensome to | 21 | | innovation in developing or providing insurance products | 22 | | and services, that adversely affect competition in the | 23 | | insurance industry, or that restrict improvements for | 24 | | consumers of insurance products or services; and | 25 | | (4) an identification of the overlap or fragmentation |
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| 1 | | of regulation of insurance products or services and | 2 | | recommendations for reducing, consolidating, or | 3 | | eliminating such overlap or fragmentation. | 4 | | Section 35. Funding. The Department, by rule, may establish | 5 | | the cost of each application for petition.
| 6 | | Section 99. Effective date. This Act takes effect January | 7 | | 1, 2018.".
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