HB 5423 Summary

• Changes terminology from "commissioner" to "director of the department" throughout the Insurance Code of 1956 to reflect organizational restructuring of insurance regulatory authority.

• Modifies the Catastrophic Claims Association's structure by establishing it as an unincorporated nonprofit association with a 5-member board of directors appointed by the director of the department.

• Establishes biennial adjustment mechanism for catastrophic claims liability limits beginning July 1, 2013, increasing the $500,000 threshold by the lesser of 6% or the consumer price index, rounded to the nearest $5,000.

• Requires the board to disclose to the public the calculations and charges to member insurers under the premium assessment formula, notwithstanding confidentiality provisions.

• Streamlines plan of operation approval process by eliminating requirements for separate commissioner approval, board ratification, and membership voting, replacing them with board majority approval and director approval.