S.B. 95-38 Preneed funeral contracts - requirements - appropriation. Amends the regulatory framework for persons selling preneed funeral contracts. Establishes a separate license application procedure for initial applicants. Permits initial and renewal applicants to evidence their financial responsibility by posting a surety bond. Prohibits an insurance company from holding a license. Requires contract sellers to keep copies of all annual reports and other statutorily required records.
States that licenses shall be automatically renewed each June 30, upon a licensee's demonstration of compliance with initial application requirements and payment of an annual renewal fee based on the aggregate price of all contracts outstanding on the prior December 31. Requires contract sellers to file an annual report by March 31 of each year or pay a late fee.
Requires that a copy of any agreement between a contract seller and a general provider of funeral services be provided to the contract buyer and that a general provider hold the contract buyer harmless for any funds due from the contract seller. In lieu of these requirements, the contract seller may include a statement of guarantee in its preneed contract, signed by the general provider.
States that when the consideration for a preneed contract is an assignment of life insurance benefits, the unpaid balance shall not exceed the value of the assignment. Payment of the unpaid balance cannot be required after the third anniversary of the issue date of the contract. Requires that such a contract identify the insurance policy and the name of the issuing company. Provides that an assignment of life insurance benefits may be irrevocable.
Requires a preneed contract to authorize the contract seller to perform under the contract if, prior to the expiration of 168 hours following the death of the contract beneficiary, either it has received authorization or the contract beneficiary's legal representative has not cancelled the contract.
Requires preneed contracts to include certain representations, including the following:
Limits the use of preneed contract forms to those which have been approved under the new requirements.
Authorizes the use of common trusts by contract sellers. Establishes new quarterly reporting requirements for contract sellers with respect to trusted funds. Requires that excess trust assets be valued annually and that a trustee obtain an affidavit from the contract seller acknowledging its performance before releasing any trust funds.
Authorizes the commissioner of insurance to take action against a contract seller convicted of certain crimes involving fraud or the misappropriation of funds. States that all rules of the division of insurance concerning preneed funeral contracts that are in effect on July 1, 1995, are repealed.
Prohibits an insurance company from issuing a policy that is advertised as covering burial expenses unless the policy states that the proceeds may not be sufficient at the time of need.
States that a person shall not be prosecuted for testifying or producing evidence if such person asked to be excused from such action and was directed otherwise by the commissioner of insurance, unless such person waived his or her immunity. Includes the requirements for such a waiver.
Appropriates $6,256 to the department of regulatory agencies for the implementation of this act.
APPROVED by Governor May 25, 1995
EFFECTIVE May 25, 1995
S.B. 95-116 Health insurance - prostate cancer screening expenses. Requires individual and group sickness and accident policies and health maintenance organization contracts to provide coverage for prostate cancer screening expenses, effective January 1, 1996.
APPROVED by Governor June 5, 1995
EFFECTIVE July 1, 1995
S.B. 95-174 Automobile insurance - references to personal injury protection provisions - "No fault" act. Places statutory references to personal injury protection "PIP" coverage provisions where needed in the "Colorado Auto Accident Reparations Act" to make it clear when the PIP provisions apply.
APPROVED by Governor April 7, 1995
EFFECTIVE April 7, 1995
S.B. 95-232 Domestic stock insurance - recreation and reenactment of laws. Recreates and reenacts the following laws: (1) A law requiring principal owners, directors, and officers of domestic stock insurance companies to file statements with the insurance commissioner indicating the extent and status of their ownership of such companies; and (2) a law regulating the solicitation of proxies, consents, or authorizations by certain domestic stock insurers having 100 or more stockholders of record. Repeals these laws on July 1, 1996.
APPROVED by Governor May 23, 1995
EFFECTIVE May 23, 1995
H.B. 95-1052 Division of insurance - records - confidentiality. Declares that records of the division of insurance are confidential and not subject to disclosure if such records are provided by another state and that state's laws treat the records as confidential.
Allows the division to share otherwise confidential information with insurance regulators in other states if they agree to maintain the same level of confidentiality as applies in Colorado.
APPROVED by Governor April 13, 1995
EFFECTIVE April 13, 1995
H.B. 95-1077 Health insurance - required coverage - preventive child health supervision services. Requires health benefit plans delivered, issued for delivery, renewed, extended, or modified in this state to provide coverage for child health supervision services for children up to age 13. Defines the services which must be covered. States that the required coverage shall be exempt from deductible and dollar limit provisions and that any copayment shall not exceed that which is applicable to a physician visit. Exempts health benefit plans made available to employees of a local government or political subdivision.
APPROVED by Governor May 22, 1995
EFFECTIVE July 1, 1995
H.B. 95-1106 Uninsurable health insurance plan - preexisting condition - repeals employer contribution relating to preexisting condition. Changes the definition of a preexisting condition for purposes of the "Colorado Uninsuranble Health Insurance Plan Act" to be not more restrictive than an injury, sickness, or pregnancy for which a person incurred charges, received medical treatment, consulted a health care professional, or took prescription drugs within the 6-month period before the coverage effective date. Repeals the requirement that an employer contribute to the plan on behalf of an employee denied coverage because of a preexisting condition.
APPROVED by Governor March 17, 1995
EFFECTIVE March 17, 1995
H.B. 95-1201 Charitable gift annuities - exempt from regulation. Exempts the issuance of a charitable gift annuity from the definition of transacting insurance business and from regulation by the division of insurance. Makes the exemption apply to any annuity: In compliance with the definition of "charitable gift annuity" for federal income tax purposes; containing a statement that it is not issued by an insurance company, regulated by the division of insurance, or protected by a state guaranty fund; and issued or guaranteed by an organization that, for the three years prior to issuance, was qualified to receive charitable contributions.
APPROVED by Governor April 17, 1995
EFFECTIVE April 17, 1995
H.B. 95-1230 Insurance producers - commissions - licensing - fees. Restores a provision requiring licensing of public adjusters, which provision was inadvertently omitted from the "Colorado Single Insurance Producer Licensing Act" adopted in 1993 and effective January 1, 1995.
Renews the prohibition on paying or accepting commissions or other remuneration for services for which a license is required unless the person performing such services was actually licensed when the services were performed.
Restores the insurance commissioner's authority to approve continuing education courses.
Reestablishes the requirement that certain persons otherwise exempt from the written examination for licensure nonetheless be tested on the relevant Colorado law and rules.
APPROVED by Governor March 30, 1995
EFFECTIVE March 30, 1995
H.B. 95-1252 Mammography screening expenses - reimbursement. Requires health care contracts and policies which are required to reimburse beneficiaries for mammography screening expenses to cover routine and certain diagnostic screening expenses and to state whether such expenses are covered on a calendar year or a contract year basis.
States that one routine mammography screening shall be covered each calendar or contract year and, if not used, such benefit may be used for one diagnostic screening for such year.
States that moneys in the breast cancer screening fund shall be used for such diagnostic screening services as may be indicated.
APPROVED by Governor May 16, 1995
EFFECTIVE July 1, 1995
H.B. 95-1254 Health insurance - small employers - disability - claims - preexisting conditions. Makes articles 8 and 16 of title 10, C.R.S., applicable to small employers if stated conditions are met. Requires the provisions concerning small employer carriers and small group plans not to apply to an individual health benefit plan issued to a business group of one before January 1, 1996, if continuous coverage is maintained and plan benefits are not changed.
Prohibits group disability income insurance policies from defining "preexisting condition" more restrictively than an injury or sickness for which charges were incurred within the 12-month period preceding the effective date of coverage. Requires individual disability income insurance benefits not to be reduced or denied for claims commencing after 2 years from the date of issuance of the policy, on the ground that a condition or disease not specifically excluded from coverage on the date of loss existed before the date of coverage.
APPROVED by Governor May 23, 1995
EFFECTIVE May 23, 1995
H.B. 95-1271 Approved nonadmitted insurers - surplus lines insurance - financial regulation. Increases the amount of security required of applicants for surplus line producer licenses from $1,500 to $25,000. Imposes additional financial requirements for nonadmitted reinsurers.
Clarifies that surplus lines insurance brokers are required to pay a premium tax separate from and in lieu of the premium tax paid by insurance companies generally. Changes the name of the "Surplus Lines Insurance Act" to the "Nonadmitted Insurance Act" and certain terms used in the act. Provides that the regulation of nonadmitted insurers is in regard to property and casualty insurance transactions. Adds a definition of "surplus lines insurance" in such act.
Requires each surplus line coverage contract to state that the insurer is not licensed in Colorado but is an approved nonadmitted insurer and that protection is not provided to the insured under the guaranty association law. Deletes language authorizing the insurance commissioner to approve placement of surplus lines insurance in insurance pools, underwriting associations, or other programs on a case-by-case basis.
Increases the requirements for inclusion on the list of approved nonadmitted insurers, including providing information on the insurer's financial status, maintaining additional capital and surplus, trust accounts, and funds and providing proof of the insurer's solvency.
Increases the maximum penalty for placing insurance with a nonadmitted insurer that has not been approved from $250 to $10,000. Changes the revocation of a surplus line broker's license for certain acts from a mandatory act of the insurance commissioner to a permissive act.
Clarifies that the insurance commissioner may examine the records of the broker's association that performs functions or duties on behalf of the commissioner. Deletes the prohibition of compelling surplus lines insurance brokers to join such association as a condition of licensure. Requires such brokers to cooperate with such association and the insurance commissioner. Eliminates the authority of such association to submit reports and recommendations to the insurance commissioner on the financial condition of any nonadmitted insurer. Modifies the immunity provisions granted to such association and the insurance commissioner's representatives for actions taken or omitted in connection with the examination of surplus line coverages.
Increases the maximum fine from $500 to $10,000 for persons refusing to obey the insurance commissioner's order to produce documents and disclose gross premiums associated with the placement of insurance with nonadmitted insurers.
Tightens the requirements to qualify as an industrial insured in order to secure insurance from nonadmitted insurers.
APPROVED by Governor May 16, 1995
EFFECTIVE May 16, 1995
H.B. 95-1282 Rental vehicles - exclusion for certain motor vehicle insurance provisions. Excludes a commercial motor vehicle rental agreement from the definition of "policy" of auto insurance. Excludes commercial motor vehicle rental agreements from the definition of "policy of motor vehicle insurance". Specifies that commercial motor vehicle rental agreements are not subject to the requirement that a policy of motor vehicle insurance offered in this state must offer uninsured motorist coverage.
APPROVED by Governor April 7, 1995
EFFECTIVE April 7, 1995
H.B. 95-1284 Professional malpractice coverage - exclusions - sexual misconduct. Declares that certain exclusions in professional malpractice policies, applicable to claims of professional malpractice where there is also an allegation or proof of sexual misconduct, are void and unenforceable as against public policy. Does not apply to approved nonadmitted insurers.
APPROVED by Governor May 24, 1995
EFFECTIVE May 24, 1995
H.B. 95-1319 Black lung coverage - availability - joint underwriting association. Creates a temporary joint underwriting association, consisting of all workers' compensation insurers in the state, to provide black lung coverage for employers that are entitled to such coverage but are unable to purchase it through the voluntary market. Directs the commissioner of insurance to authorize the association to commence underwriting operations upon finding that black lung insurance is unavailable or available only at unreasonably high rates.
Provides for the payment of startup costs and elimination of deficits, if any, through uniform assessments based on members' share of the workers' compensation insurance market. Assigns supervisory duties to a board of 6 directors appointed by the commissioner. Requires the board to submit its plan of operation to the commissioner for initial approval, to file annual statements, to submit to annual examinations, and to make annual reports to the general assembly.
Directs the commissioner to adopt emergency rules immediately and to issue all necessary orders, subject to judicial review, to implement the act as soon as is practicable. Immunizes the commissioner, the association, and other persons for all acts taken in good faith to carry out the act. Exempts the association from payment of all fees and taxes except property taxes.
APPROVED by Governor May 23, 1995
EFFECTIVE May 23, 1995
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