Clarifies what entities are exempt from licensure. Clarifies that nonresidents seeking a producers license do not need to comply with continuing education requirements. Eliminates continuing education requirement for limited lines or restricted licenses for producers whose licenses are in good standing. Prohibits any person from negotiating, selling, or soliciting any class of insurance without the appropriate license.
Allows persons with the designation of chartered financial consultant and registered health underwriter to be exempt from prelicensing examination and education requirements. Prevents nonresident bail bonding agents from obtaining a license in Colorado.
Eliminates the separate licensure of producers of crop hail, health maintenance organizations, and nonprofits on and after January 1, 2002. Grandfathers in insurance producers holding a valid license for crop hail, health maintenance organization, or nonprofits on or before January 1, 2002.
Eliminates prelicensure education requirements for residents and nonresidents if the applicant already had a license for that line of authority. Specifies that a nonresident may avoid prelicensure education requirements if the person:
Requires nonresidents who move to Colorado to apply for a producer's license within 90 days after permanently moving to Colorado.
Adds the reference of "business entity" to insurance agencies so as to encompass limited liability companies and limited liability partnerships within insurance regulation.
Requires an insurer of limited lines credit insurance to provide a program of instruction to its insurance producers.
Specifies that a person who has been denied a license by the division of insurance ("division") may not be issued a producer's license. Describes the lines of authority applicable to a producer's license.
Provides for producer's license waivers for persons in military service. Eliminates the fee collected by the division for amended licenses.
Increases the time period for temporary licenses from 90 days to 180 days. Allows the commissioner of insurance ("commissioner") to limit the authority of a temporary licensee. Allows a temporary licensee to be sponsored by a licensed producer. Requires the sponsor be responsible for all acts of the temporary licensee.
Consolidates fee schedules and eliminates specific fee amounts. Allows the commissioner to set reasonable fees and penalties that relate to the act.
Outlines requirements for notification of termination of business between a producer and insurer. Allows the commissioner to request information related to the termination. Provides immunity from civil liability for disclosure of documents related to the termination by an insurer, a producer, the commissioner, and an organization to which the commissioner is a member and that compiles information related to the termination. Requires all documents, materials, or other information obtained related to a termination to be confidential and not subject to the Open Records Act until final adjudication by a court of competent jurisdiction. Allows the commissioner to share confidential information with other states, the national association of insurance commissioners, and other regulatory and law enforcement agencies. Requires that such states, organization, and agencies maintain the confidential nature of the information. Provides that the sharing of such confidential information with other states, the national association of insurance commissioners, or other agencies is not a waiver of the confidentiality. Permits law enforcement from any state, federal, or international agency to use confidential information in any civil or criminal investigation, or prosecution by a government agency, except as provided in provisions of criminal justice records law. Allows for disclosure of confidential information for use in any private civil matter so long as the commissioner finds that such disclosure does not cause substantial injury to the public interest. Authorizes the commissioner to discipline an insurer or producer that fails to report a termination.
Eliminates the requirement for countersignatures by producers on insurance policies issued by foreign insurance companies.
Allows the commissioner to put an insurance producer on probation or assess a penalty, in addition to existing disciplinary measures, for the following:
Clarifies the definition of "moral turpitude" for the purposes of a disciplinary action against a licensee. Includes sexual assault against a minor within the definition of "moral turpitude". Requires the commissioner to notify a licensee or applicant of revocation or denial of the licensee's or applicant's license. Requires a licensee or applicant to notify the commissioner of either civil or criminal court or administrative orders against the producer.
Eliminates the requirement that a surplus lines broker maintain an office in Colorado. Eliminates the fee for acceptance of service of process by the commissioner.
Clarifies that premium computations for health insurance need to be certified by a qualified actuary.
APPROVED by Governor June 5, 2001
EFFECTIVE January 1, 2002
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.
S.B. 01-109 Motor vehicle insurance - no-fault law - motorist insurance identification database program - continuation under sunset law - appropriation. Extends the automatic termination date of the motorist insurance identification database program to July 1, 2003, pursuant to the provisions of the sunset law.
Continues the no-fault motor vehicle insurance act until July 1, 2002. Lowers the maximum registration fee for the program from $1 to 50¢. Authorizes the department of revenue to fine insurers for failure to comply with the department's rules concerning the program and to suspend the registration of motor vehicle owners who do not respond in a timely manner to a notice that their vehicle is not properly insured. Changes the reporting requirement to the general assembly from the number of uninsured motorist claims reported by insurers to the proportion of uninsured motorists.
Appropriates $1,971,945 and 8.0 FTE to the department of revenue for the implementation of the act.
APPROVED by Governor May 22, 2001
EFFECTIVE May 22, 2001
S.B. 01-205 Health insurance - small group plans - Colorado small employer health reinsurance program. Removes the existing requirement that the Colorado small employer health reinsurance program be operational before small employer carriers must offer basic and standard health insurance plans. Continues the basic and standard plan requirements for small employers until July 1, 2006. Allows the Colorado small employer health reinsurance program board to continue for 1 additional year after its scheduled repeal date of July 1, 2001, for the purpose of winding down its business.
APPROVED by Governor June 5, 2001
EFFECTIVE July 1, 2001
S.B. 01-224 Health insurance - rural areas - telemedicine - managed care - network adequacy - community contract health care providers. Makes legislative findings.
Adds flexibility to network adequacy requirements for carriers offering a managed care plan that is not a health maintenance organization or a health maintenance organization with a point of service option. Limits when network adequacy flexibility is applicable. Allows for balance billing in certain circumstances. Allows for disclosures to consumers related to balance billing and changes in the network by a carrier.
Adds insurance coverage for telemedicine into the state's insurance laws for consumers in rural areas. Allows for telemedicine if such services may be appropriately rendered through telemedicine. Allows telemedicine to be a covered expense for the purposes of medicaid for recipients in rural areas.
Creates a legislative task force to evaluate health care needs for Colorado. Sets out the membership of the task force and establishes deadlines for appointment. Lists the items to be evaluated by the task force. States that testimony shall be taken from interested parties throughout the state. Directs the task force to hold 6 meetings in rural Colorado and 2 in the Denver metropolitan area. Allows the task force to make legislative recommendations pursuant to the joint rules. Allows for per diem and expenses for members of the task force. Allows the task force to accept and expend gifts, grants, and donations for the purposes of the task force.
Adds telemedicine to the definitions of the practice of medicine. Allows health care providers other than physicians to practice telemedicine within the health care provider's scope of practice. Defines telemedicine. Requires that telemedicine meet a generally accepted standard of care for the practice of medicine. Creates medical record custody provisions for telemedicine records maintained by health care facilities and providers.
Allows a community to contract with a medical provider for services. Requires the health care provider's salary to be paid by the community contracting with the health care provider. Allows a contracted health care provider to charge a fee for service that is lower than insurance reimbursement rates. Allows for the creation of special health assurance districts to contract with a medical provider for services. Creates a sunset review for community contract providers.
Provides that section 6 of the act shall only take effect if one or more of the following bills are not adopted: House Bill 01-1240, House Joint Resolution 01-1011, House Joint Resolution 01-1027, or House Joint Resolution 01-1050.
APPROVED by Governor June 5, 2001 PORTIONS EFFECTIVE June 5, 2001, January 1, 2002
NOTE: House Joint Resolution 01-1011 and House Joint Resolution 01-1050 were not adopted by the General Assembly; therefore, section 6 of the act is effective.
S.B. 01-239 Health insurance - pharmacy benefit management firms. Defines "pharmacy benefit management firm". Precludes unauthorized transfers of accounts of prescription drug customers.
Makes violations of the provision concerning unauthorized transfer of a covered person or subscriber's prescription an unfair method of competition and unfair or deceptive act or practice in the business of insurance.
APPROVED by Governor June 5, 2001
EFFECTIVE January 1, 2002
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.
H.B. 01-1021 Motor vehicle insurance - personal injury protection - rules. Requires the commissioner of insurance to hold a rule-making hearing on or before December 31, 2001, regarding insurers' disclosure obligations at the time coverage is offered.
APPROVED by Governor March 20, 2001
EFFECTIVE March 20, 2001
H.B. 01-1034 Motor vehicle insurance - no-fault insurance. Consolidates the definition of "resident relative" and makes it apply to the entire "Colorado Auto Accident Reparations Act". Identifies as "basic", rather than "minimum", the current standard personal injury protection benefits of $50,000 in medical, $50,000 in rehabilitative, and $25,000 in legal liability benefits. Identifies as "reduced" the auto policy offered to persons within 185% of the federal poverty level. Identifies as "enhanced" benefits those that are purchased in addition to basic personal injury protection benefits. Clarifies provisions regarding the primacy of coverage for benefits for employees not within the scope or course of employment when injured in an auto accident.
APPROVED by Governor June 1, 2001
EFFECTIVE July 1, 2001
H.B. 01-1037 Health care provider networks - requirements for conducting insurance business. Creates specific requirements for health care provider networks that must be met in order to conduct insurance business in the state of Colorado. Requires a health care provider network to obtain a certificate of authority from the commissioner of insurance, maintain its principal and home office in this state, hold at least one board meeting per year in this state, allow records and books to be accessible to the commissioner of insurance, and perform most of its essential functions in this state.
APPROVED by Governor March 1, 2001
EFFECTIVE March 1, 2001
H.B. 01-1055 Title insurance companies - filing requirements. Requires title insurance companies to file new and amended fees, in addition to rates as currently required, with the commissioner of insurance.
APPROVED by Governor March 9, 2001
EFFECTIVE March 9, 2001
H.B. 01-1064 Insurance - companies - accounting. Modifies the definition of "admitted assets" and "nonadmitted assets" to assets defined in the nationally recognized insurance statutory accounting principles. Eliminates conflicts in the percentage limitations in current law and those found in nationally recognized insurance statutory accounting principles. Conforms leased property to a nationally recognized insurance accounting principle that lease property be included in the same balance sheet category as if the property had been leased.
Defines and outlines accounting and reporting requirements for securities lending, repurchases, reverse repurchases, and dollar roll transactions.
Describes the accounting and reporting requirements for derivative transactions and restrictions related to derivative transactions. Defines counter-party exposure amount, derivative instrument, hedging transaction, income-generation transaction, and replication transaction. Limits the activities related to derivative transactions.
Conforms the requirements for title plants to nationally recognized insurance accounting principles.
Applies this act to valuation of all admitted and nonadmitted assets and accounting and reporting for securities lending, repurchases, reverse repurchases, dollar roll transactions, derivative transactions, and transactions related to derivative transactions entered into on or after March 30, 2001.
APPROVED by Governor March 30, 2001
EFFECTIVE March 30, 2001
H.B. 01-1097 Certified capital companies - premium tax - credit - appropriation. Creates a premium tax credit to be used for investment in certified capital companies, which are defined as partnerships, corporations, trusts, or limited liability companies that have as their primary business activity the investment of cash in qualified businesses, including qualified rural businesses. Directs the Colorado office of economic development (office) to regulate certified capital companies.
Defines a qualified rural business as a qualified business that has its principal business operations in a designated rural county, defined as a county with a population of not more than 150,000 and, if the population exceeds 20,000, that has a growth rate that did not exceed the statewide average by more than 25%. Defines a qualified business as a business that meets the following conditions at the time of a certified capital company's first investment in the business:
Requires applicants to fulfill the following requirements to become certified as a certified capital company:
Defines an insurer that makes an investment in a certified capital company for purposes of a qualified investment as a "certified investor".
Provides that any certified investor who makes an investment of certified capital pursuant to an allocation of premium tax credits earns a vested credit against state premium tax liability equal to the investment of certified capital during the year of investment.
Allows a certified investor to take up to 10% of the vested premium tax credit in any taxable year; however, the credit may not exceed the state premium tax liability of the certified investor in any taxable year. Allows unused credits to be carried forward for up to 10 years until utilized.
Creates two $100 million pools of tax credits, both of which consist of $25 million that must first be invested in qualified rural businesses and then $75 million that may later be invested in any qualified business. The first pool relates to investments made prior to January 31, 2004, and may be claimed in tax years beginning in 2003; the second pool relates to investments made after January 31, 2004, and may be claimed in tax years beginning in 2005.
Requires that premium tax credits be allocated in the order that premium tax allocation claims are filed with the office. Prohibits the state from imposing any additional or retaliatory tax on a certified investor as a result of claiming such credit. Permits premium tax credits to be transferred or sold according to rules promulgated by the office.
Requires a certified capital company to make qualified investments equal to at least 30% of its certified capital within 3 years after its allocation date and equal to at least 50% of its certified capital within 5 years after its allocation date.
Requires certified capital companies to pay an annual certification fee pursuant to a reasonable fee schedule adopted by the office. Requires the office to conduct an annual review of each certified capital company to ensure that the company meets all requirements for continued certification.
Appropriates $84,168 from the division of insurance cash fund to the office for implementation of the act, and appropriates $2,232 each to the governor's office and the department of law for legal services.
BECAME LAW June 9, 2001
EFFECTIVE June 9, 2001
H.B. 01-1156 Health insurance - mandate - coverage for medical foods for home use - age limit for coverage. Creates mandated health care coverage for medical foods for home use for which a physician has issued a written, oral, or electronic order, that are appropriate for inherited diseases that involve enzymatic disorders caused by single gene defects affecting the metabolism of amino, organic, and fatty acids, and for which standard medical methods of diagnosis, treatment, and monitoring exist. Establishes that the maximum age to receive benefits for phenylketonuria is 21 years of age for men and 35 years of age for women. Specifies that lactose- or soy-intolerant patients are not covered by the benefit.
APPROVED by Governor June 4, 2001
EFFECTIVE January 1, 2002
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.
H.B. 01-1236 Preauthorization for insurance coverage - biologically based mental illness. Requires an insurance carrier, in the determination to provide coverage for a biologically based mental illness, to use a preauthorization or utilization review mechanism that is the same as, or no more restrictive than, that used in the determination to provide coverage for any other physical illness.
Authorizes the commissioner of insurance to adopt rules in furtherance of this requirement. Requires the commissioner of insurance, when promulgating rules, to recognize that the mechanisms for preauthorization may differ between medical specialties and that the mechanisms shall not be more restrictive with respect to mental illness than for any other physical illness.
APPROVED by Governor June 5, 2001
EFFECTIVE August 8, 2001
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.
H.B. 01-1319 Health insurance - Colorado Uninsurable Health Insurance Plan. Changes the name of the "Colorado Uninsurable Health Insurance Plan Act" to the "Colorado High Risk Health Insurance Act". Adopts the "CoverColorado" program ("program") to take the place of the prior program, known as CUHIP. Clarifies and adds definitions. Clarifies eligibility requirements.
Changes the composition of the program's governing board ("board") by increasing representation of the insurance carriers to include a representative of a stop-loss or excess loss carrier and changing the legislative member to ex officio status. Clarifies that 2 members who represent the consumers of the program may be currently or previously insured by the program.
Requires the board to increase the premium rates to an average of 135% of the standard risk rate established by the program before July 1, 2002. Increases the amount of coverage under the program from $500,000 to $1,000,000. Allows the board to deny program coverage to an eligible person if the premiums are paid by specified third parties. Allows coverage for dependents of eligible individuals. Defines who is a "federally eligible individual". Instructs the board to establish amounts of any coinsurance and out-of-pocket expenses that may be incurred by a participant in the program. Increases the amount of coverage for benefits under the program from 90% to 100% of expenses once any coinsurance or deductible amount is met. Extends comprehensive program coverage for a person who meets the definition of a federally eligible individual.
Requires health insurance carriers to notify any federally eligible individual that applies to a carrier for coverage under the program. Requires health insurance carriers to disclose clearly all services, items, or supplies that are not covered benefits. Allows the board to assess a special fee against insurers for the financial solvency of the program. Allows the commissioner of insurance to promulgate rules to implement the special assessment. Requires the commissioner to consider reasonable time frames, the process for determining the per capita assessment, procedures for the approval or abatement of a special assessment, and the equity of the assessment. Requires any fees assessed to be collected and used for program expenses and losses. Allows for any moneys from a fee assessment not used for expenses and losses to be invested by the board.
Requires a sunset review to be conducted of the assessment by the department of regulatory agencies in cooperation with the division of insurance, to be completed by October 15, 2007. Requires at least 2 actuarial evaluations before the first assessment and before any subsequent increase in the amount of the assessment may be made. Requires a review by the joint budget committee in the event the assessment equals 50% of the programs administrative and claims expenses. Allows carriers to pass through the amount of the assessment to insureds and denote such pass-through on billing statements.
Designates the program as the state alternative mechanism for health care coverage under the federal "Health Insurance and Accountability Act of 1996". Sets out the procedures for the program's acceptance of federally eligible individuals into the program.
APPROVED by Governor June 5, 2001
PORTIONS EFFECTIVE June 5, 2001, July 1, 2001
H.B. 01-1335 Regulation of insurance companies - insolvency - liquidation. In statutes governing the rehabilitation and liquidation (receivership) of insolvent insurance companies:
APPROVED by Governor March 28, 2001
EFFECTIVE July 1, 2001
H.B. 01-1394 Credit insurance - component rating choice - enforcement - appropriation. Allows an insurer, for credit insurance written directly by a state or national bank, to elect to have its premium rate or schedule of premium rates determined by component rating. Authorizes the commissioner of insurance ("commissioner") to establish component rating for premiums or schedules of premiums for credit insurance directly written by a state or national bank. Sets forth the components the commissioner is required to take into consideration in the development of benchmark premium rates. Authorizes the commissioner to promulgate rules to assure that premium rates are reasonable.
Requires insurers that elect to have their premium rates or schedule of premium rates determined by component rating, beginning July1, 2002, to offer only component rating for credit insurance premiums for all new policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements, and riders delivered or issued for delivery and to phase in all existing creditor accounts by no later than July 1, 2003.
Requires each credit insurer that receives combined direct credit premiums of more than $100,000 to pay an administrative assessment of not more than $1,500 annually to offset the administrative costs of the division of insurance in the department of regulatory agencies.
Empowers the commissioner, after a public hearing, to impose sanctions upon insurers whose rates, rating schedules, rating plans, or rating systems do not comply with the requirements established by the commissioner. Makes findings, determinations, rules, rulings, or orders by the commissioner subject to judicial review by the Colorado court of appeals.
Allows an insurer that elects to have its premium rates or schedule of premium rates determined by component rating to file with the commissioner and use any rate that is less than or equal to the rate established by the commissioner. Prohibits the charging of rates that are higher than those established by the commissioner.
Appropriates $67,912 to the department of regulatory agencies for allocation to the division of insurance for the implementation of the act.
APPROVED by Governor June 1, 2001
PORTIONS EFFECTIVE June 1, 2001, July 1, 2002
H.B. 01-1396 Health insurance - small group - business group of one. Permits a carrier offering health benefit coverage to a small employer to exclude from coverage persons within a small employment group who have creditable individual health insurance coverage from a source other than the employer. Allows such a carrier to decline renewal of a health benefit plan to a business group of one whose health benefit plan has been terminated for failure to pay premiums, with the period of nonrenewal extending up to 6 months or until the next open enrollment period, whichever is greater.
Limits the amount considered gross income by a business group of one to income derived in any one of 3 most-recent consecutive years. Defines "substantial part of such individual's income" as income of a business group of one that is sufficient to pay for the annual health insurance premiums for such business group of one. Clarifies that an eligible employee of a small employer who may also be considered a dependent of the employer must receive taxable income from the employer in order to qualify as a business group of 2 or more. Requires that such eligible employee receive at least the equivalent to minimum wage for working 24 hours per week on a permanent basis.
Allows obsolete health benefit plans to be discontinued by a carrier. Requires that such carrier certify to the commissioner of insurance that any other health benefit plans offered by the carrier to replace the obsolete plans:
APPROVED by Governor June 1, 2001
EFFECTIVE January 1, 2002
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.
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