Hearing Postponed on Insurance Bill

A hearing on the insurance regulatory bill, SB895, was scheduled for yesterday. The bill is a broad insurance bill which includes language for the regulation of bail bond licenses. As posted before, I support the Senate-approved version of the bill. However, the House committee substitute under consideration places new bail bond language in the bill which was requested by Senator Cauthorn. Cauthorn was not able to get the bail bond regulatory language out of the bill on the floor of the Senate, and threatened to kill the bill in his Fiscal Oversight Committee. The new language in the house substitute includes parts of the bail bond association bills SB885 and HB1997, sponsored by Senator Cauthorn and Representative Behnen.

The new language requires an agent to sign an affidavit if he leaves his current company. The affidavit must also be signed by the general agent he is leaving, stating that there are no premiums owed and that the agent (not the company) will be responsible for all future outstanding forfeitures and judgments. If the agent fails to satisfy a judgment, then his license will be immediately suspended. The new language does not address how the departing agent will handle uncollected premiums or how the agent will assume financial responsibility for future bond forfeitures and judgments entered against his/her former company. The bill also does not address what recourse an agent will have if his former company refuses to sign the affidavit allowing him/her to work. The new language also requires the Department of Insurance to issue photographic licenses.

The Senate-approved language removes the 15-year clause on felony convictions and gives the Director of Insurance the power to discipline a license holder without first getting approval from the AHC. Any discipline ordered by the department can be appealed.

The hearing was postponed because of time constraints. A hearing is expected early next week.