SB14-148 Summary

• Market conduct examinations must focus on insurer activities causing actual harm to consumers rather than administrative errors or infrequent unintentional errors that do not cause significant consumer harm

• Insurers cannot be subject to a new market conduct examination more frequently than once every 5 years unless extraordinary circumstances demonstrating imminent risk to consumers are established by clear and convincing evidence

• Pre-examination conferences must follow the National Association of Insurance Commissioners' market conduct examiner's handbook and address early resolution, avoiding unnecessary document production, and ensuring just and speedy examination disposition

• All fines and penalties must be rationally related to actual consumer harm and cannot exceed one year of the insurer's reported profit for the five-year examination period

• The commissioner must consider actual consumer harm when imposing penalties and cannot base penalties on administrative errors or infrequent unintentional random errors that do not cause significant consumer harm