House Bill 386

Actions | Amendments
Last Action 03/26/19: signed by Governor (KY Acts ch. 147)
Title AN ACT relating to the insurance industry.
Bill Documents Current/Final
Introduced
Bill Request Number 332
Sponsor B. Rowland
Summary of Original Version Create new sections of Subtitle 3 of KRS Chapter 304 to define terms, including "beta test,"; "exclusivity period"; "insurance innovation"; "limited no-action letter" "permanent no-action letter," and "regulatory sandbox"; create an application process for admitting companies to the regulatory sandbox for the purpose of permitting the company to beta test an insurance innovation under a limited no-action letter; impose certain disclosure and financial stability requirements for companies making an application; establish a director of insurance innovation within the Department of Insurance; establish procedures and requirements for the review and acceptance of applications; grant the commissioner authority to modify, increase, or change certain application requirements; grant the commissioner authority to reject applications; allow companies to file a petition for reconsideration and request a hearing upon rejection of an application; establish requirements for issuing a limited no-action letter; establish how long the safe harbor of a limited no-action letter persists; set time period for a beta test at one year; allow a beta test to be extended for up to one year; establish requirements for a beta test; establish company's rights during a beta test; authorize the commissioner to issue certain orders to enforce the terms and conditions of a beta test; establish requirements for an exclusivity period; authorize the commissioner to issue an order terminating the exclusivity period; establish a cause of action for infringement of exclusivity period; establish reporting requirements for evaluation of beta test by the commissioner; establish requirements for issuance of a permanent no-action letter by the commissioner; establish that certain documents relating to the financial condition of a company are confidential and not subject to public disclosure pursuant to the Kentucky Open Records Act; establish certain disclosure rights of the commissioner; require the commissioner to submit reports relating to the administration of Sections 1 to 9 of this Act.
Index Headings of Original Version Reports Mandated - Department of Insurance, reports to legislature, require submission of
Insurance - Insurance innovations, no-action letters, issuance of
Insurance - Regulatory sandbox for insurance innovations, creation of
State Agencies - Department of Insurance, insurance innovations, no-action letters, issuance of
State Agencies - Department of Insurance, reports to legislature, require submission of
Claims - Infringement of exclusivity period claim, creation of
Jump to Proposed Amendments House Committee Substitute 1
Senate Committee Substitute 1
Votes Vote History

Actions

Top | Amendments
02/14/19
  • introduced in House
02/15/19
  • to Banking & Insurance (H)
  • posted in committee
02/20/19
  • reported favorably, 1st reading, to Calendar with Committee Substitute (1)
02/21/19
  • 2nd reading, to Rules
02/22/19
  • posted for passage in the Regular Orders of the Day for Monday, February 25, 2019
02/27/19
  • 3rd reading, passed 96-1 with Committee Substitute (1)
02/28/19
  • received in Senate
03/04/19
  • taken from Committee on Committees (S)
  • 1st reading
  • returned to Committee on Committees (S)
  • to Banking & Insurance (S)
03/06/19
  • taken from Banking & Insurance (S)
  • 2nd reading
  • returned to Banking & Insurance (S)
03/12/19
  • reported favorably, to Rules with Committee Substitute (1) as a consent bill
03/13/19
  • posted for passage in the Consent Orders of the Day for Wednesday, March 13, 2019
  • 3rd reading, passed 37-0 with Committee Substitute (1)
  • received in House
  • to Rules (H)
  • posted for passage for concurrence in Senate Committee Substitute (1)
03/14/19
  • House concurred in Senate Committee Substitute (1)
  • passed 93-3
  • enrolled, signed by Speaker of the House
  • enrolled, signed by President of the Senate
  • delivered to Governor
03/26/19
  • signed by Governor (KY Acts ch. 147)

Proposed Amendments

Top | Actions
Amendment House Committee Substitute 1
Summary Retain original provisions, except remove requirement for director to deliver a preliminary report to the commissioner and make a recommendation whether a permanant no-action letter should be issued; extend period that company may employ insurance innovation pursuant to terms and conditions of limited letter.
Index Headings Insurance - Insurance innovations, no-action letters, issuance of
Insurance - Regulatory sandbox for insurance innovations, creation of
State Agencies - Department of Insurance, insurance innovations, no-action letters, issuance of
State Agencies - Department of Insurance, reports to legislature, require submission of
Claims - Infringement of exclusivity period claim, creation of
Reports Mandated - Department of Insurance, reports to legislature, require submission of

Amendment Senate Committee Substitute 1
Summary Retain original provisions, except delete definitions for "company," "exclusivity period," "permanent no-action letter," and "startup company"; add definitions for "applicant," "participant," and "extended no-action letter"; establish that applications may be filed on or before December 31, 2025; amend application and notice of acceptance requirements; establish persons who are not authorized to make an application for admission to the sandbox; amend the minimum terms and conditions that govern a beta test; authorize the extension of the time period for a beta test only upon a request made in an application; authorize the commissioner to impose a fine for violation of the terms or conditions set forth in a limited letter; authorize commissioner to terminate a beta test that causes consumer harm; remove provisions granting an exclusivity period; establish requirements for an extended no-action letter; provide that limited and extended no-action letters shall be published on the department's Web site; and make technical corrections.
Index Headings Insurance - Insurance innovations, no-action letters, issuance of
Insurance - Regulatory sandbox for insurance innovations, creation of
State Agencies - Department of Insurance, insurance innovations, no-action letters, issuance of
State Agencies - Department of Insurance, reports to legislature, require submission of
Reports Mandated - Department of Insurance, reports to legislature, require submission of
Technical Corrections - HB 386

Last updated: 5/10/2019 10:34 AM (EDT)
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