Minnesota Legislature
HF 2500
as introduced - 90th Legislature (2017 - 2018) Posted on 03/23/2017 01:35pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/23/2017 |
Current Version - as introduced
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A bill for an act
relating to commerce; modifying minimum solvency requirements for health
insurers and fraternals to conform to the accreditation standards of the National
Association of Insurance Commissioners; amending Minnesota Statutes 2016,
sections 60A.52, subdivision 1; 64B.42, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 60A.52, subdivision 1, is amended to read:
Subdivision 1.
Definition.
"Company action level event" means the following events:
(1) the filing of an RBC report by a health organization that indicates thatnew text begin : (i)new text end the health
organization's total adjusted capital is greater than or equal to its regulatory action level
RBC but less than its company action level RBC;new text begin or (ii) the health organization has total
adjusted capital which is greater than or equal to its company action level RBC but less than
the product of its authorized control level RBC and 3.0 and triggers the trend test determined
in accordance with the trend test calculation included in the health RBC instructions;
new text end
(2) notification by the commissioner to the health organization of an adjusted RBC report
that indicates an event in clause (1), provided the health organization does not challenge
the adjusted RBC report under section 60A.56; or
(3) if, pursuant to section 60A.56, a health organization challenges an adjusted RBC
report that indicates the event in clause (1), the notification by the commissioner to the
health organization that the commissioner has, after a hearing, rejected the health
organization's challenge.
Sec. 2.
Minnesota Statutes 2016, section 64B.42, subdivision 1, is amended to read:
Subdivision 1.
Definition.
"Fraternal action level event" means, with respect to a society,
any of the following events:
(1) the filing of a risk-based capital report by the society that indicates that:
(i) the society's total adjusted capital is greater than or equal to its fraternal authorized
control level risk-based capital but less than its fraternal action level risk-based capital; or
(ii) the society's total adjusted capital is greater than or equal to its fraternal action level
risk-based capital but less than the product of its fraternal authorized control level risk-based
capital and deleted text begin 2.5deleted text end new text begin 3.0new text end and has a negative trend;
(2) the notification by the commissioner to a society of an adjusted risk-based capital
report that indicates an event in clause (1), provided the society does not challenge the
adjusted risk-based capital report under section 64B.44;
(3) if, pursuant to section 64B.44, the society challenges an adjusted risk-based capital
report that indicates an event in clause (1), the notification by the commissioner to the
society that the commissioner has, after a hearing, rejected the society's challenge; or
(4) the failure of the society to file a risk-based capital report by March 1, unless the
society has provided an explanation for the failure that is satisfactory to the commissioner
and has cured the failure within ten days after March 1.