Insurance Code-amendments.

ORIGINAL
House
Bill No
.
HB0014

ENROLLED ACT NO. 15,

HOUSE OF REPRESENTATIVES

SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2017 General Session

AN ACT relating to insurance; requiring registration of third party administrators and providing associated rulemaking authority; establishing a fee for third party administrators; amending licensing provisions; amending insurance producer continuing education requirements; repealing obsolete language; and providing for an effective date.

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

Section 1
.

W.S. 26
‑
53
‑
101 through 26
‑
53
‑
103
are
created to read:

CHAPTER 53
THIRD PARTY ADMINISTRATORS

26
‑
53
‑
101
.

Definitions
.

(a)

As used in this chapter:

(
i
)

"
Third party administrator
"
means a person who directly or indirectly underwrites, collects charges, collateral or premiums from, or adjusts or settles claims on residents of this state, in connect
ion with life, annuity, health, or
stop
‑
loss
coverage offered or provided by an insurer
, but does not include any of the following:

(A)

An employer on behalf of its employees or the employees of one (1) or more subsidiary or affiliated corporations of such employer;

(B)

A union on behalf of its members;

(C)

A fully self
‑
funded insurance plan meeting the definition of employee benefit plan as set
forth in the Employee Retirement Income Security Act of 1974;

(D)

An insurance company licensed in this state;

(E)

A prepaid hospital or medical care plan;

(F)

An insurance agent or broker licensed in this state when acting as an insurance agent or broker;

(G)

A creditor on behalf of its debtors with respect to insurance covering a debt between the creditor and its debtors;

(H)

A bank, credit union or other financial institution which is subject to supervision or examination by federal or state banking authorities when acting as a bank, credit union or other financial institution and not as an administrator;

(J)

A credit card company which advances for and collects premiums or charges from its credit card holders who have authorized it to do so, provided such company does not adjust or settle claims;

(K)

A person who adjusts or settles claims in the normal course of the person
'
s practice or employment as an attorney at law or an adjuster licensed in this state and who does not collect charges or premiums in connection with insurance coverage or annuities.

26
‑
53
‑
102
.

Registration of third party administrators; rulemaking authority.

No
person
shall
act as a third party administrator
in this state
without a certificate of registration issued by the commissioner
. The commissioner in compliance with the W
yoming Administrative Procedure
Act shall promulgate reasonable rules and regulations necessary to implement this chapter.

26
‑
53
‑
10
3
.

Third party administrator fee.

Every third party administrator registered with the department shall pay the fee provided for in W.S. 26
‑
4
‑
101(
a)(xix).

Section 2
.

W.S. 26
‑
4
‑
101(
a) by creating a new paragraph (xix), 26
‑
9
‑
202(a)(vii) and by creating a new paragraph (xxi), 26
‑
9
‑
207(
f) and (g), 26
‑
9
‑
211(a)(xi)
and by creating a new paragraph (xiii), 26
‑
9
‑
219(a), 26
‑
9
‑
231(f) and 26
‑
32
‑
101 by creating a new subsection (c) are amended to read:

26
‑
4
‑
101
.

Fee schedule.

(a)

The commissioner shall collect in advance or contemporaneously fees, licenses and miscellaneous charges as specified in this subsection. Collection may include the acceptance of electronic funds transfer. All fees and other charges collected by the commissioner as specified in this subsection shall be nonrefundable:

(xix)

Third party administrator (biennial
) .
.................................................
$ 200.00

26
‑
9
‑
202
.

Definitions.

(a)

As used in this chapter:

(vii)

"
Limited lines insurance
"
means those lines of insurance referred to in
paragraph (xxi) of this
sub
section and
W.S.
26
‑
9
‑
221
,

26
‑
9
‑
234,
26
‑
32
‑
101,
26
‑
37
‑
102(a)(iv) or any other line of insurance the commissioner deems necessary to recognize for the purposes of complying with W.S. 26
‑
9
‑
208(e);

(xxi)

"
Crop insurance
"
means insurance providing protection against damage to crops from unfavorable weather conditions, fire, lightning, flood, hail, insect infestation, disease or other yield
‑
reducing conditions or perils provided by the private insurance market or that is
provided
by the federal crop insurance corporation
,
including multi
‑
peril crop
and protection of revenue from adverse market fluctuation
insurance.

26
‑
9
‑
207
.

License.

(f)

Licensees shall inform the commissioner by any means acceptable to the commissioner of a change of
name,
address
, telephone number or other contact information as defined by rule and regulation of the commissioner
within thirty (30) days of the change.

(g)

The commissioner may contract with nongovernmental entities, including the National Association of Insurance Commissioners or any affiliates or subsidiaries that association oversees, to perform any ministerial functions, including the collection of fees, related to
producer or surplus lines broker

licensing that the commissioner and the nongovernmental entity may deem appropriate.

26
‑
9
‑
211
.

License denial, nonrenewal or revocation.

(a)

The commissioner may, after appropriate notice and opportunity for hearing pursuant to the Wyoming Administrative Procedure Act and in accordance with W.S. 26
‑
2
‑
125 through 26
‑
2
‑
129, place on probation, suspend, revoke or refuse to issue or renew an insurance producer
'
s license or other license issued under this code, or may levy a civil penalty in accordance with W.S. 26
‑
1
‑
107 or any combination of actions, for any one (1) or more of the following causes:

(xi)

Improperly using notes or any other reference material to complete an examination for an insurance license;
or

(xiii)

Failing to maintain a valid home state license.

26
‑
9
‑
219
.

Adjuster
'
s license; exception; notification.

(a)

Application for license as an adjuster shall be made to the commissioner on forms he prescribes and furnishes. The commissioner shall issue the license as to qualified individuals upon payment of the license application fee stated in W.S. 26
‑
4
‑
101.
An adjuster may
qualify
for a license in one (1) or more of the following lines of insurance:

(
i
)

P
roperty insurance, as defined in W.S. 26
‑
5
‑
104;

(ii)

C
asualty insurance, as defined in W.S. 26
‑
5
‑
106;

(iii)

C
rop insurance, as defined in W.S. 26
‑
9
‑
202(
a)(xxi).

26
‑
9
‑
231
.

Continuing education.

(f)

Every person subject to this section shall furnish, in a form satisfactory to the commissioner, written certification as to the courses, programs or seminars of instruction taken by that person. The certification shall be executed by or on behalf of the sponsoring organization within a
sixty (60)

fifteen (15)
day period following the course, program or seminar. A nonresident adjuster having met the continuing education requirements in his home state is exempt from the provisions of this section. A nonresident adjuster not licensed in his home state is subject to the requirements of this section.

26
‑
32
‑
101
.

Supervision and audit of funds; approval of investment; promulgation of rules and regulations; licenses.

(c)

A person shall not sell prepaid or prearranged funeral contracts in this state unless the person is licensed by the department in accordance with W.S. 26
‑
9
‑
203.

Section 3
.

W.S. 26
‑
9
‑
221
is
repealed.

Section 4
.

This act is effective July 1, 2017
.

(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