An Act Concerning Prior Review Of Insurance Department Guidelines And Bulletins.
Impact
The bill's adoption is expected to influence the operations of the Insurance Department by instituting a checks-and-balances system with the legislative body. By mandating the review of department guidelines and bulletins, it ensures that legislative representatives can participate in the oversight of regulatory changes that may affect the insurance sector. This is anticipated to foster accountability within the Insurance Department and provide a platform for stakeholder input on proposed changes.
Summary
SB00412 aims to establish a requirement for the Insurance Department to submit all intended guidelines and bulletins to the relevant standing committee of the General Assembly prior to their issuance. This procedural change is designed to enhance transparency and legislative oversight within the insurance regulatory framework. The act stipulates that the guidelines and bulletins cannot be issued until a period of at least sixty days following their submission to the General Assembly has elapsed. The implementation date for this legislation is set for October 1, 2015.
Sentiment
Initial discussions around SB00412 reflect a generally supportive sentiment towards increasing legislative oversight in the insurance sector. Proponents argue that the requirement for prior review of guidelines and bulletins could lead to more informed decision-making and greater public trust in the insurance regulatory process. However, there may be some concerns regarding the potential for bureaucratic delays in implementing necessary changes due to the mandated review period.
Contention
While the bill primarily presents a procedural enhancement, there may be underlying contention regarding the balance of power between state regulatory agencies and the legislative branch. Critics may argue that excessive review could hinder the Insurance Department's ability to respond swiftly to emerging issues and market changes. Additionally, discussions might revolve around the adequacy of the proposed sixty-day review period and its implications for timely regulatory updates.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.