Bill > H489

This bill aims to ensure appropriate allotment of risk by certain insurance carriers. The key provisions are: 1. It limits the reported contribution to surplus for carriers whose Risk-Based Capital (RBC) Ratio falls below 300% to 2.5%, and for carriers with RBC Ratio above 600% to 0.5%, and for carriers with RBC Ratio above 700% to 0%. This is intended to prevent carriers from retaining excessive surplus. 2. It requires carriers to submit annual comprehensive financial statements to the Division of Insurance, including detailed information on premiums, claims, medical loss ratios, administrative expenses, risk-based capital ratios, and other financial metrics, both for their fully-insured and self-insured business. 3. It requires the Division to hold a public hearing if a carrier reports an RBC ratio above 600%, to review the carrier's financial condition and how it will use additional surplus above that level to increase relative prices for low-priced acute care hospitals. 4. It allows the Commissioner to waive specific reporting requirements for certain classes of carriers if deemed inapplicable. The overall goal is to increase transparency and accountability around insurers' financial practices and use of surplus, with a focus on ensuring appropriate allocation of risk and resources.

Business and Industry

https://malegislature.gov/Bills/190/H489