H.B. 1050 - Legal Service Plans

• Adds new sections to Chapter 488 authorizing the commissioner to investigate legal service plans, require access to records, and examine financial accounts, with plans required to respond to inquiries within seven days.

• Establishes confidentiality protections for commissioner records and reports, making them privileged and inadmissible in private civil actions, while allowing commissioner use in regulatory proceedings and information sharing with other jurisdictions.

• Requires legal service plans to obtain a certificate of authority before operating, with documentation including financial structure, benefit details, dispute procedures, and ownership information.

• Mandates plan administrators maintain accumulated funds in federally insured trustee accounts and obtain a $100,000 surety bond, with penalties of up to $1,000 per day for noncompliance.

• Sets initial certificate of authority fee at $500 and annual renewal fee at $1,000 for legal service plans under the insurance commissioner's fee schedule.