COMMITTEE ON INSURANCE AND RETIREMENT
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 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 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.
10. ANY OTHER ENTITY LICENSED UNDER THIS TITLE."
Line 43, strike ", criminal"
Page 2, line 1, strike "or criminal"
Line 7, strike ", criminal"
Line 18, after the period strike remainder of line; strike line 19; line 20, strike "audit document under other provisions of applicable law,"
Between lines 40 and 41, insert:
"5. THE DIRECTOR MAY OBTAIN AUDIT DOCUMENTS TO ENSURE THAT THE COMPANY TAKES STEPS TO CORRECT DEFICIENCIES IDENTIFIED IN THE AUDIT.
6. THE DIRECTOR MAY IMPOSE REGULATORY SANCTIONS ON A COMPANY FOR DEFICIENCIES IDENTIFIED IN A COMPLIANCE AUDIT THAT ARE NOT CORRECTED BY THE COMPANY WITHIN A REASONABLE TIME.
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."
Amend title to conform