HOUSE  BILL  ANALYSIS

                 ON

              ESB 6039

Brief Description: Imposing fines or regulatory assessments under the insurance code.

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BACKGROUND:  Under current law, the insurance commissioner is authorized to enforce statutory and regulatory requirements by revoking or suspending an insurer's certificate of authority or by levying fines.  The fines may be not less than $250 and not more than $10,000.  Through a settlement agreement or consent order, an insurer may agree to other remedies that may exceed $10,000.

If a civil action is necessitated to recover a fine, the action is brought by the attorney general.  Fines collected by the insurance commissioner are deposited in the state general fund.

 SUMMARY:  Any fine or other regulatory assessment imposed in an enforcement action by the insurance commissioner must be collected by the Department of Revenue on behalf of the state and paid into the state general fund.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Rulemaking:  No specific authority.