SENATE COMMITTEE ON HEALTH AND HUMAN SERVICES

 

 

February 05, 2001                                                                                                   Hearing Room B

1:00 PM                                                                                                                                 Tape 21

 

MEMBERS PRESENT:         Sen. Bill Fisher, Chair

Sen. Margaret Carter, Vice-Chair

Sen. Frank Shields

Sen. Ken Messerle

 

MEMBER EXCUSED:          Sen. Gary George

 

STAFF PRESENT:                 Rick Berkobien, Administrator

Andrew Morris, Committee Assistant

 

MEASURES HEARD:                       SB 267 Public Hearing and Possible Work Session

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 21, A

004

Chair Fisher

Calls meeting to order at 1:07 p.m. and opens a public hearing on         SB 267.

SB 267 PUBLIC HEARING

008

Rick Berkobien

Administrator.  Explains SB 267 to the committee.

047

Charles Nicoloff

Administrator, Insurance Division.  Presents testimony in support of SB 267 (EXHIBIT A).  Explains insurance terminology.  Comments on the background on SB 267.  Explains what happens when an insurance company becomes insolvent.  States that there needs to be an adequate surplus.  States the capital surplus statutes are 25 years old. 

100

Nicoloff

Continues explaining insurance to the committee.  Discusses risk based capital requirements.  Gives a sectional analysis of SB 267. 

176

Sen. Carter

Asks why the bill is necessary and asks why certain groups are included in the bill.

185

Nicoloff

Responds that the current requirement of $500,000 dollars does not cover current insolvencies.  States that the bill covers the whole insurance code.

200

Lewis Littlehales

Insurance Division.  States the statute has expired.

212

Sen. Carter

Asks about capital requirements.

216

Littlehales

Responds the million-dollar requirement would bring the capital requirement in-line with current inflation rates.

225

Sen. Messerle

Asks about different types of insurance requirements for businesses. 

228

Nicoloff

Responds by explaining the different types of insurances.  States the capital surplus belongs to the stockholders. 

243

Sen. Messerle

Comments on the costs of capital surplus. 

252

Nicoloff

Discusses the sale of stocks.  States the bill is a win-win situation.  States that an amendment is needed to fix some language.

288

Chair Fisher

Closes the public hearing on SB 267 and adjourns the meeting at     1:28 p.m.

 

Submitted By,                                                                           Reviewed By,

 

 

 

Andrew Morris,                                                                        Rick Berkobien,

Committee Assistant                                                                 Administrator

 

EXHIBIT SUMMARY

 

A – SB 267, Written testimony, Charles Nicoloff, 3 pp.