ALLEN SUBSTITUTE FLOOR AMENDMENT
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2560
I move the following SUBSTITUTE Floor amendment to the INSURANCE AND RETIREMENT Committee amendment to
HOUSE BILL 2560 (Reference to printed bill)
Page 1, line 7, after "Definitions" insert "; applicability
A."
Line 10, after "investigation" insert "which follows adopted written standards and criteria"
Line 14, after the first "title" insert "and specified in subsection b"; after the period insert "an audit shall establish a start and end date."
Line 17, after "audit" insert "AND IDENTIFIED SPECIFICALLY AS PART OF AN INSURANCE COMPLIANCE AUDIT"
Between lines 37 and 38, insert:
"B. THIS ARTICLE APPLIES TO INSURANCE COMPLIANCE SELF-EVALUATIVE AUDIT DOCUMENTS PREPARED AND INSURANCE COMPLIANCE AUDITS CONDUCTED BY OR ON BEHALF OF AN INSURER OR OTHER COMPANY LICENSED OR REGULATED UNDER THIS TITLE INCLUDING ANY:
1. STOCK, MUTUAL, RECIPROCAL OR TITLE INSURER.
2. FRATERNAL BENEFIT SOCIETY.
3. HEALTH CARE SERVICES ORGANIZATION.
4. HOSPITAL SERVICE CORPORATION, MEDICAL SERVICE CORPORATION, DENTAL SERVICE CORPORATION, OPTOMETRIC SERVICE CORPORATION, OR HOSPITAL, MEDICAL, DENTAL AND OPTOMETRIC SERVICE CORPORATION.
5. PREPAID DENTAL PLAN ORGANIZATION.
6. MECHANICAL REIMBURSEMENT REINSURER.
7. PREPAID LEGAL PLAN.
8. LLOYD'S ASSOCIATION.
9. SERVICE COMPANY AS DEFINED IN THIS TITLE."
Line 43, strike ", criminal"; after "proceeding" insert "other than an administrative hearing before the department subject to the provisions of this chapter"
Page 2, line 1, strike "or criminal"
Line 7, strike ", criminal"
Lines 11 and 17, strike "voluntarily"
Line 18, after the period strike remainder of line; strike line 19; line 20, strike "audit document under other provisions of applicable law,"
Line 23, strike "voluntarily"; after the period strike remainder of line; strike lines 24 through 28
Line 30, after "REMAINS" insert "CONFIDENTIAL AND PRIVILEGED AND"
Line 32, after "INCLUDING" insert "THE SELF-CRITICAL AUDIT PRIVILEGE,"
Line 34, strike "the property of the company and"; after "any" insert "further"
Between Lines 35 and 36, insert:
"(c) NOT SUBJECT TO TITLE 39, CHAPTER 1, ARTICLE 2, NOT SUBJECT TO SUBPOENA AND NOT SUBJECT TO DISCOVERY OR ADMISSIBLE IN A PRIVATE ADMINISTRATIVE PROCEEDING OTHER THAN CONDUCTED BY THE DIRECTOR, OR IN A PRIVATE CIVIL ACTION."
Between lines 40 and 41, insert:
"5. THE DIRECTOR MAY OBTAIN AUDIT DOCUMENTS AT ANY TIME TO ENSURE THAT THE COMPANY TAKES STEPS TO CORRECT DEFICIENCIES IDENTIFIED IN THE AUDIT.
6. THE DIRECTOR MAY USE THE AUDIT DOCUMENTS IN THE FURTHERANCE OF ANY REGULATORY OR LEGAL ACTION BROUGHT AS PART OF the director’s duties. the company shall comply with any compliance dates set by the director with respect to the audit.
7. IN ORDER TO FACILITATE IDENTIFICATION, AUDIT DOCUMENTS PRODUCED FOR THE AUDIT SHALL BE LABELED "COMPLIANCE REPORT: PRIVILEGED DOCUMENT."
8. THE PRIVILEGE DESCRIBED IN THIS ARTICLE DOES NOT APPLY TO:
(a) A DOCUMENT, COMMUNICATION, DATA OR REPORT OR OTHER INFORMATION REQUIRED BY THE DEPARTMENT OR OTHER REGULATORY AGENCY TO BE COLLECTED, DEVELOPED, MAINTAINED OR REPORTED UNDER APPLICABLE LAW.
(b) INFORMATION OBTAINED BY OBSERVATION, SAMPLING OR MONITORING BY THE DEPARTMENT OR OTHER REGULATORY AGENCY.
(c) INFORMATION OBTAINED FROM A SOURCE NOT INVOLVED IN THE PREPARATION OF THE INSURANCE COMPLIANCE AUDIT REPORT.
9. IF AN AUDIT REPORT IS OBTAINED, REVIEWED OR USED IN A CRIMINAL PROCEEDING, THE PRIVILEGE DESCRIBED IN THIS ARTICLE IS NOT WAIVED OR ELIMINATED FOR ANY OTHER PURPOSE.
10. THIS ARTICLE DOES NOT PROVIDE CIVIL OR CRIMINAL IMMUNITY TO AN ORGANIZATION OR TO AFFECT ANY OTHER PRIVILEGE THAT MAY BE AVAILABLE BY LAW.
11. A PERSON WHO CONDUCTS OR PARTICIPATES IN THE PREPARATION OF A COMPLIANCE AUDIT AND WHO HAS ACTUALLY OBSERVED PHYSICAL EVENTS MAY TESTIFY REGARDING THOSE EVENTS, BUT MAY NOT BE COMPELLED TO TESTIFY OR PRODUCE DOCUMENTS RELATED TO ANY PRIVILEGED PART OF THE AUDIT OR ANY ITEM LISTED IN section 20-3301, subsection a, paragraph 2.
12. THE AUDIT SHALL NOT PREVENT THE DISCOVERY OF A DOCUMENT OR OTHER EVIDENCE, OTHERWISE DISCOVERABLE, MAINTAINED BY AN INSURER THAT WAS NOT DEVELOPED FOR THE AUDIT PURSUANT TO THIS ARTICLE."
Page 3, line 1, after "proceeding" insert "OTHER THAN AN ADMINISTRATIVE HEARING BEFORE THE DEPARTMENT SUBJECT TO THE PROVISIONS OF THIS CHAPTER"
Strike Lines 7 through 20
Line 21, after "AFTER" strike remainder of line
Line 22, after "INSURER" insert "IS SERVED"
Line 23, after "THE" strike remainder of line; line 24, strike "CAUSED THE DOCUMENT TO BE PREPARED" insert "insurer"
Line 44, after "PROCEEDING" strike remainder of line; line 45, strike "SUBSECTION B, PARAGRAPH 3 APPLIES TO A CRIMINAL PROCEEDING"
Page 4, Line 5, strike ", CRIMINAL"
Line 9, strike "TO THE DIRECTOR OR ATTORNEY GENERAL, AS APPROPRIATE,"
Line 28, strike "OR C"