The 1st meeting of the Interim Joint Committee on Banking and Insurance was held on Tuesday, June 22, 2004, at 10:00 AM, in Room 149 of the Capitol Annex. Representative John Adams, Co-Chair and Senator Tom Buford, Co-Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Tom Buford, Co-Chair; Senators Lindy Casebier, Julie Denton, Ernie Harris, R.J. Palmer II, and Dan Seum; Representatives John Adams, James Comer, Ron Crimm, Ted "Teddy" Edmonds, Danny Ford, James Gooch, J. R. Gray, Dennis Horlander, Don Pasley, Steve Riggs, Arnold Simpson, Brandon Smith, Roger Thomas, Tommy Thompson, Ken Upchurch, and Susan Westrom.
Guests: Glenn Jennings, Acting Executive Director, Office of Insurance, and Jim Adams, Commissioner, Public Protection Cabinet.
LRC Staff: Greg Freedman, Rhonda Franklin, and Jamie Griffin.
Senator Tom Buford welcomed the new Director of the Office of Financial Institutions, Tom Miller, and Jim Adams, Commissioner, Public Protection.
Glenn Jennings, Acting Director, Office of Insurance, gave a brief discussion regarding the legislation that the Office of Insurance requested in the 2004 Regular Session that did not pass.
Representative Roger Thomas referenced House Bill 605 dealing with the NAIC interstate compact relating to marketing of new insurance products. He asked if the compact had passed whether it would have an effect on pricing of insurance products. Julie McPeak, General Counsel, Office of Insurance, stated that it should include rate setting.
Mr. Jennings stated that in regard to agents receiving bonuses for holding down or delaying claims, the Office of Insurance does not regulate contracts between insurance companies and agents. He stated that insurance companies give incentives to agents for selling insurance products. He stated that they have not had specific complaints about this practice. He stated that the Office of Insurance can issue advisory bulletins regarding incentives for holding down or delaying claims if this becomes a problem.
Mr. Jennings stated that United Wisconsin Life Insurance started selling individual health insurance June 1, 2004. He stated that brings total to eight including Kentucky Access.
Without further business, the meeting adjourned at 10:55 a.m.