The 1st meeting of the Interim Joint Committee on Banking and Insurance was held on Tuesday, January 23, 2001, at 10:00 AM, in Room 149 of the Capitol Annex. Representative James Bruce, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Tom Buford, Co-Chair; Representative James Bruce, Co-Chair; Senators Bob Jackson, Ray Jones II, David K. Karem, Marshall Long, Albert Robinson, Richard Sanders Jr, and Dan Seum; Representatives John Adams, Paul Bather, Sheldon Baugh, Ira Branham, James Comer, Brian Crall, Ron Crimm, Robert Damron, Mike Denham, Danny Ford, James Gooch, Dennis Horlander, R. J. Palmer, Steve Riggs, Dottie Sims, Roger Thomas, Ken Upchurch, and Rob Wilkey.
Guests:
LRC Staff: Greg Freedman, Emily Bottoms, and Jamie Griffin.
The meeting was called to order and the roll called.
Senator Tom Buford and Representative Jim Bruce welcomed the new members to the committee.
Representative Bruce stated that if the sponsor of each bill that has been referred to the committee wanted to give a brief explanation of the bill, they could do so at this time.
Representative Steve Riggs gave a summary of House Bill 37. He stated that House Bill 37 requires every property insurer to include a premium credit or discount provision in its rates for buildings equipped with an automatic sprinkler system.
Representative Dottie Sims asked if that only pertained to new homes.
Representative Riggs stated that it applies to new or older homes with automatic sprinkler systems.
Senator Richie Sanders stated his concern with this effecting water rates.
Representative Riggs stated that this would not effect water rates.
Representative Brian Crall gave an explanation of House Bill 83. He stated that this bill authorizes purchasing outlets that have registered with the Department of Insurance to provide health benefits through insurers to eligible individuals. He stated that this bill will make insurance more accessible and create a safety net.
Representative Bruce asked if the Department of Insurance has been contacted about this legislation.
Representative Crall stated that he had contacted the Department.
Representative Ron Crimm stated he had some concerns with this bill.
Representative Steve Riggs stated that the bill could be strengthened against fraud by requiring the purchasing outlets to obtain errors and omissions coverage.
Representative Bob Damron gave an explanation of House Bill 102. He stated this bill, among other things, requires mortgage loan companies to have and maintain a minimum net worth of $20,000. He stated that this addresses legislation that was repealed in 1998.
Representative Dennis Horlander asked how this would effect owner financing.
Representative Damron stated that it would be exempt and consumers can be made aware of the exemption.
Representative Damron stated that he thought it would be a good idea to invite Commissioner Janie Miller to come to the next meeting to address the rate increases.
Representative Jim Bruce stated that she would be invited to come to the next meeting.
With no further business, the meeting adjourned.