Insurance commissioner outlines technical bill, flags "problem children" for amendment

Insurance Commissioner DJ Bettencourt and department staff briefed the committee on a broad technical bill to update insurance statutes. Bettencourt said the measure streamlines reporting (eliminating unnecessary automatic annual filings), strengthens confidentiality and privilege for investigative materials, modernizes enforcement language, and clarifies workers-compensation rating flexibility.

He identified several "problem children" that the department will amend: statutory per-day penalties for nonresponse to department inquiries (the department prefers an administrative fine with an intent standard to avoid penalizing clerical errors), an automatic nonrenewal provision the department prefers to handle with a regulatory bulletin, and a licensing standard that previously tied denials to misdemeanor convictions. Bettencourt said the department will narrow that standard to crimes involving moral turpitude related to insurance duties.

Department staff described implementation mechanics: using certified mail or read receipts to establish intentional nonresponse and an administrative process to assess fines up to $5,000 per violation where intentionality is shown. Agency staff also previewed a technical cleanup related to oversight of continuing care retirement communities.

Ending: The department plans to circulate amended language to address industry due-process concerns and to present the proposed amendments at the subcommittee the next day.