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Sen. Antonio Muņoz
Filed: 3/15/2017
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1 | | AMENDMENT TO SENATE BILL 1723
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1723 by replacing |
3 | | everything after the enacting clause with the following:
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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.
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6 | | Section 99. Effective date. This Act takes effect January |
7 | | 1, 2018.".
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