The bill, HB 1197-FN, proposes a series of amendments to existing insurance laws aimed at enhancing regulatory oversight and compliance within the insurance industry. Key changes include the introduction of new provisions that establish penalties for failure to provide requested documents within 10 working days, which may result in license suspension, revocation, or administrative fines up to $5,000. The bill also modifies the process for insurance companies regarding claim determination procedures, shifting from an annual filing requirement to a request-based system, and allows for deviations from filed loss cost multipliers under specific conditions. Additionally, it emphasizes the importance of timely access to records during examinations and outlines penalties for noncompliance.

Significant legal language changes include the replacement of "denial" with "nonrenewal" and the expansion of grounds for license suspension or revocation to include offenses related to moral turpitude and dishonesty. The bill also clarifies the commissioner’s authority to impose administrative penalties for violations and ensures that claimants receive detailed information regarding their rights and reasons for claim denials. Overall, the bill aims to strengthen the integrity of the insurance industry, improve transparency, and streamline compliance requirements for insurance entities, with an effective date set for January 1, 2027.

Statutes affected:
Introduced: 400-A:16, 400-A:36, 400-A:37, 400-B:12, 402-B:12, 402-D:5, 402-D:9, 402-D:10, 402-J:6, 402-J:12, 412:28, 417:4, 417-A:5, 420-J:6, 417-A:5-a
As Amended by the House: 400-A:16, 400-A:37, 402-B:7, 402-B:12, 402-D:5, 402-D:9, 402-D:10, 402-J:6, 402-J:12, 412:28, 417:4, 420-J:6, 420-D:16-b
Version adopted by both bodies: 400-A:16, 400-A:37, 402-B:7, 402-B:12, 402-D:5, 402-D:9, 402-D:10, 402-J:6, 402-J:12, 412:28, 417:4, 420-J:6, 420-D:16-b
CHAPTERED FINAL VERSION: 400-A:16, 400-A:37, 402-B:7, 402-B:12, 402-D:5, 402-D:9, 402-D:10, 402-J:6, 412:28, 415-A:4-, 417:4, 420-J:6, 420-D:16-b
HB1197 text: 400-A:16, 400-A:36, 400-A:37, 400-B:12, 402-B:12, 402-D:5, 402-D:9, 402-D:10, 402-J:6, 402-J:12, 412:28, 415-A:4-a, 417:4, 417-A:5, 420-J:6