HB 1085 - Insurer Solvency

• Revises minimum surplus requirements for insurers applying for original certificates of authority and maintaining existing certificates, with different amounts for property/casualty, life, and health benefit plan insurers.

• Authorizes the Office of Insurance Regulation to reduce surplus requirements for health benefit plan insurers under specified circumstances such as limited geographic service areas, low premiums, or small policy counts.

• Establishes phased-in surplus increases for residential property insurers and health maintenance organizations holding certificates before specified dates, with increases scheduled between 2017 and 2025.

• Classifies health maintenance organizations and prepaid limited health service organizations as insurers for purposes of solvency, risk-based capital requirements, and related regulatory provisions.

• Revises annual and quarterly reporting requirements for health maintenance organizations and prepaid limited health service organizations, and excludes receivables from management services organizations from HMO asset calculations effective January 1, 2016.