No. SB 582
Filed under Insurance.
Required Reports of the Office of Insurance Regulation; Requiring the office to create specified reports on insurers, licensees, registrants, and their related entities, including the compensation of their executive officers; requiring the office to use a reliable and up-to-date methodology and software to create specified reports and review such methodology and software for accuracy; specifying that certain data are not considered trade secrets and may be used for certain purposes, etc.
Plain English Summary
AI-GENERATEDThe Office of Insurance Regulation must publish an annual report listing every insurer's related entities -- subsidiaries, management companies, reinsurers -- that share common executives, directors, or at least 10 percent ownership.
The office must also publish each insurer's executive compensation annually, including salaries, bonuses, and stock options, and must flag any pay that exceeds the industry average along with the insurer's justification.
Data insurers submit for these reports can no longer be withheld or shielded as a trade secret, and the office may use it for market analysis, rate-setting, and compliance reviews.
The executive-compensation report becomes a factor regulators must weigh when reviewing whether a proposed insurance rate is excessive, inadequate, or unfairly discriminatory.
AIThe office must publish a report for each insurer, licensee, or registrant listing related entities such as subsidiaries, management companies, and reinsurers, and detail the financial relationship between them.
AIThe office must publish each insurer's executive compensation, including salaries, bonuses, and stock options, and must flag any pay exceeding the industry average along with the insurer's own justification for it.
AIData insurers submit for these reports is not a trade secret, and insurers cannot refuse to hand over financial or other requested data by claiming it is business sensitive or a trade secret.
AIWhen the office decides whether a proposed insurance rate is excessive, inadequate, or unfairly discriminatory, it must now also consider the executive-compensation report created under this bill.
AIAn entity counts as related if it shares common executive officers, directors, or offices with the insurer, or if it shares at least 10 percent common ownership with it.
AIThe office may use the ownership and compensation data it collects for market analysis, financial assessments, rate-setting, and compliance reviews, not just for the two published reports.
AITo produce these two reports, the office must use methodology and software that is reliable and up to date, and must routinely review that methodology and software for accuracy.