HB 1681 -- INSURANCE
COMMITTEE ACTION: Voted "do pass by consent" by the Committee
on Insurance by a vote of 18 to 0.
This bill repeals the sunset clause (December 31, 2000) on a
provision of law that: (1) allows a creditor's claim to be
fixed using the liquidator's estimate of the insurer's
liabilities; (2) clarifies that a receiver cannot require
payment from a reinsurer based upon estimated incurred-but-not--
reported losses; and (3) allows the liquidator to negotiate a
settlement of all liabilities resulting from reinsurance
FISCAL NOTE: Estimated Net Income to General Revenue Fund of
Unknown in FY 2001, FY 2002, and FY 2003. Estimated Net Effect
on County Foreign Insurance Fund of $0 in FY 2001, FY 2002, and
PROPONENTS: Supporters say that this law was passed last year
to clarify some issues regarding the liquidation of insurers.
The law has worked well and should be made permanent by removing
the sunset provision.
Testifying for the bill were Representative Gunn; and
Reinsurance Association of America.
OPPONENTS: There was no opposition voiced to the committee.
Richard Smreker, Legislative Analyst