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HB0005 • 2010

Insurance-risk based capital revisions.

AN ACT relating to insurance; amending events triggering a company action level event under risk based capital requirements; and providing for an effective date.

Elections
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Corporations
Last action
2010-03-04
Official status
enrolled
Effective date
7/1/2010

Plain English Breakdown

The plain English breakdown is still being put together. The official documents below are already here.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0005HS001

Standing Committee • H07

Adopted, Corrected

Plain English: Adopted, Corrected Standing Committee by H07

  • This amendment summary is using official source text because generated interpretation was skipped for this run.
  • The official amendment text was available, but an easy plain-English summary could not be produced automatically during the last sync.

Bill History

  1. 2010-03-04 LSO

    Assigned Chapter Number - 26

  2. 2010-03-04 Governor

    Governor Signed HEA0008

  3. 2010-03-02 Senate

    S President Signed HEA No. 0008

  4. 2010-03-01 House

    H Speaker Signed HEA No. 0008

  5. 2010-02-26 LSO

    Assigned Number HEA0008

  6. 2010-02-26 Senate

    S Passed 3rd Reading

  7. 2010-02-25 Senate

    S Passed 2nd Reading

  8. 2010-02-24 Senate

    S Passed CoW

  9. 2010-02-24 Senate

    S Placed on General File

  10. 2010-02-24 Senate

    S07 Recommended Do Pass

  11. 2010-02-18 Senate

    S Introduced and Referred to S07

  12. 2010-02-18 Senate

    S Received for Introduction

  13. 2010-02-17 House

    H Passed 3rd Reading

  14. 2010-02-16 House

    H Passed 2nd Reading

  15. 2010-02-15 House

    H Passed CoW

  16. 2010-02-15 House

    H Amendments Adopted

  17. 2010-02-15 House

    Amendment Adopted

  18. 2010-02-12 House

    H Placed on General File

  19. 2010-02-12 House

    H07 Recommended Amend and Do Pass

  20. 2010-02-09 House

    H Introduced and Referred to H07

  21. 2010-02-08 House

    H Received for Introduction

  22. 2009-12-01 LSO

    Bill Number Assigned

Official Summary Text

Bill No.: <billno> Drafter: <drafterinit>

Bill No.:
HB0005
Drafter:

LGC

LSO No.:
10LSO-0156
Effective Date:

7/1/2010

Enrolled Act No.:
HEA0008

Chapter No.:
26

Prime Sponsor:
Joint Corporations, Elections and Political
Subdivisions Interim Committee

Catch Title:
Insurance-risk
based capital revisions.

Subject:
Amending
events triggering a company action level event under risk based capital
requirements.

Summary/Major Elements:

The act amends the existing risk-based capital law. Risk-based
capital is a way of determining the amount of capital any given insurer should
have in order to remain solvent based on the particular risks that insurer
undertakes. Risk-based capital requirements help assure that insurers have
sufficient reserves to pay claims in the future.

This act adds a trend test for property and casualty insurers. A
trend test for life and health insurers exists in current law.

The trend test gives regulators advanced notice or early
warning with regard to an insurer's risk-based capital. If the trend test is
triggered, the insurance department can require the insurer to take action to
correct the risk-based capital issue before it becomes a significant problem
.

The act was created to comply
with accreditation requirements from the National Association of Insurance Commissioners.

Current Bill Text

Read the full stored bill text 
WORKING DRAFT

ORIGINAL HOUSE

BILL

NO.
0005

ENROLLED ACT NO. 8, HOUSE OF REPRESENTATIVES

SIXTIETH LEGISLATURE OF THE STATE OF
WYOMING
2010 BUDGET SESSION

AN ACT relating to
insurance; amending events triggering a company action level event under risk based capital requirements;
and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 26
‑
48
‑
101(a)(vi) and 26
‑
48
‑
103(a)(i
)
are
amended to read:

ARTICLE 1
RISK BASED CAPITAL FOR INSURERS

26
‑
48
‑
101.

Definitions.

(a)

As used in this article:

(vi)

"Negative trend" means with respect to a life or disability insurer a negative trend over a period of time, as determined in accordance with the "trend test calculation" included in the

life
RBC instructions;

26
‑
48
‑
103.

Company action level event.

(a)

"Company action level event" means any of the following events:

(i)

The filing of an RBC report by an insurer which indicates

that

any
of the following
:

(A)

The insurer's total adjusted capital is greater than or equal to its regulatory action level RBC but less than its company action level RBC;

or

(B)

If a life or disability insurer, the insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than the product of authorized control level RBC and two and one-half (2

1/2), and has a negative trend
;
.

or

(C)

If a property and casualty insurer, the insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than
three (3) times
its authorized control level RBC and triggers the trend test in accordance with the trend test calculation included in the property and casualty RBC instructions.

Section 2.
This act is effective July 1, 2010.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

1