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House | April 14, 2015 | Committee Room | Insurance Committee

Full MP3 Audio File

The pages in the Sergeant at arms [xx] Leo Mars I am Jean Morane[sp?] way in the back, okay. The pages today Jean Smith Jackson Kelly sponsored by representing the doctrine then we have Roman Guillard Pit County sponsored by Brian Brown representive of the doctrine Jillian Louis [xx] county Sarah Stephens. Thank you for being here for all your hard work. we have three bills we're going to get through today the first one is on captive insurance house bill 163 and if I'm not mistaken we have a PCS and I need a motion to, don't move Representative [xx] says to who was that seconding here one Representative Brown, excuse me, all in favor say I and now Christine Hers is going to explain this bill. Somebody on the department want to speak on this explain it, if not I want to turn it over to Representative Tom and let him do it.  I'll just start and put the flame around and [xx] Yes sir. Thank you Tom This is the Captive Insurance Amendment which last session we allow Captive Insurance to come to the state and hopefully create jobs and economic impact we've already have two and a half million dollars of impact from from Brain Captive Insurance here  Department of Insurance and the MCC CIA which is the Association for Captive Insurance jointly brought this to us to help reduce some of the regulations to expand the businesses and then the Department of Insurance would be if there is any technical question the best one to answer this. Thank you Mr. Chairman Thank you. Is there anybody here who wants to speak on this bill? Well do we have any questions? How did the two and half million volume come What it did was. Go ahead. Thank you. What it did was it allowed captive insurance companies to operate in North Carolina which before there was no regulatory environmnet or authority to do so, so it was by bringing in some of those captive insurers to work here, captive insurance are those big companies that self insure, they set up a company in order to insure themselves and so it would be those types of jobs and impact and the trade association  is here if you want further explanation. Thank you. Representative Dollar recognized for quest. I'm just wanting to [xx] is this is, is it fair to say that this is, what a master technical operations in this further refinements in this new no opposition to the bill or concerns about the bill. Representative. [xx]. Yes sir. there's been no opposition towards the industry and the department of insurance of [xx]. Any further questions or debate? Representative Warren [xx]. Any further questions or debate? For now is the appropriate time try to make a detailed report on the [xx] production [xx] great Yeah. I don't. [xx] have one so Okay, I have a motion, all in favor say aye? Aye. moving forward house bill 287 and Chairman setter will set this one thank you Mr Chair. Members of the committee, this is a none controversial deal to everyone's knowledge at this point.

[xx]. Yes, that's correct I made a motion for the PCS, Mover of the motion? Representative Wan has the motion, Represented Gill, second, all in favor say Aye Aye PCS is now before us. Thank you all. This is another agency bill that was at the request of the department of insurance and it makes very [xx] changes, I haven't heard of any oppositions or concerns regarding this bill but we'll let Mr. Park from the department of insurance address it first. Thank you Mr. Chairman. My name is Ben Popkin, I'm Director of Government Affairs for the Department of Insurance. I appreciate all of your action on this and on the prior issue the captive insurance developments, which you started to do last time, have been excellent and very successful. and on $2.5 million impact on a steady economy in that kind and the bill is being represented  by dollar noted an excellent step to keep North Carolina competitive in that area. now this Bill on the  House 4287 is assortment of fairly minor technical changes in the department, so I fit to do or I requested to do to go ahead and streamline operations and make certain conforming actions. I'd be glad to go through them section at a time or rather just highlight some of the major point, at the chair's preference. The major points will be, if you look at Section 5 of the Bill, this is the penalty enhancement for individuals who are employers who have been obtaining insurance or self insuring the cars of their employees and has been failing to satisfy their obligation to get that coverage, you're under the law required to give the employees 45 days notice if you had ceased to pay for that coverage and there had been certain instances where businesses have dropped coverage on their employees not notified anyone and ended costing quite amount of damage to what ranging in a hundred of thousands up to $ two and a half million dollars. forming change simply makes the criminal penalty equivalent to what other criminal provisions are, raising the offence if it involves more that $100, 000 up to a class C felony, which is equivalent with obtaining property through false pretenses in the assortment of embezzlement charges. There is also section eight, a program which the commissioner is excited to put before you that will allow for optional program enhancements in both homeowners and auto-mobile insurance. This would allow for companies to offer at their discretion to consumers who would have the option of purchasing these products. It would be approved outside of the rate bureau. These would be along the lines of the progressive edge where they have an assortment of gadgets you could attached to your car and such that would provide you with discounts, and I would leave to the insurers if the would want to clarify in what type of optional enhancements they may do in addition to that for automobile or homeowners, it could be so far as allowing optional coverages to be purchased this as a separate rider coverage, something like that. It's not mandatory, but simply allows scale the option of offering this to the consumers.commissioner only supports giving consumers as many options they can for different types of insurance products they can get on the market and that is what section eight would do here. Those really are the most substantive of the provisions, I'll be happy to go through other details but those are the most substantive there. Any questions from the committee? Mr. Chairman, at the proper time; Representative Lyndon, I think now is the proper time so go ahead I don't see any opposition any questions; I move that we give a favorable report to house bill 287, propose committee substitute unfavorable to the to the part of appropriation. To the part of appropriation. Anybody grab a second? [xx] OK, Representative all in favor say aye? The motion case, and we're going to go to house bill 288 and representative [xx] is going to represent that one.  Thank you Excuse me we do have a [xx] I know we have a [xx] 4 [xx] OK PDS force. Ladies and gentlemen committee thank you Mr. Chairman will pass out

that their is an amendment to this bill will pass out first so that we can actually talk about what we are going to talk about Anybody like starting? Alright, good for you. Members of the committee you have the amendment before you, it amends the bill on page 8, line 5 through 13, eliminate in the following lines, and I move for adoption of the amendment. Representative said he'll move for adoption in a minute. Amendment, anybody in favor say I I Okay, Thank you. Ladies and gentlemen be this proposed committee sub in exchange is that it'll cut line with insurance laws to comply with requirements of the National association of insurance commissioners, and allow North Carolina to partner with insurance to maintain its accreditation with that organization. Any questions to the committee we will direct to Ben Hopkins. We have any questions or debate on this bill, this just allows us to keep our accreditation. I've read these bills last night and the day we're going for motion. Representative Tom. The motion that we stick to the amendment rolling to UPTN. Seconded by Representative Horn, that being any more debate, any questions or debate? All in favor say, aye. Aye. The meeting is adjourned.