S.F. 2183 Section 1. NEW SECTION . 505.20 Excess reserves. 1 1. The commissioner shall identify any insurance company 2 or nonprofit health service corporation doing business in this 3 state that issues more than eighty percent of all individual 4 health insurance policies or hospital or medical service 5 contracts issued in this state and that issues more than 6 sixty percent of all small group health insurance policies or 7 hospital or medical service contracts issued in this state. 8 2. For such an insurance company or nonprofit health service 9 corporation so identified, the commissioner shall make a 10 determination of financial reserves necessary for the company 11 or corporation to meet its obligations under its policies or 12 contracts issued in this state. 13 3. If the commissioner determines that such a company or 14 corporation has reserves in excess of those necessary to meet 15 its policy or contractual obligations, the commissioner may 16 order the company or corporation to distribute the excess to 17 its policyholders or contract subscribers. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill requires the commissioner of insurance to 22 identify any insurance company or nonprofit health service 23 corporation in this state that issues more than 80 percent 24 of all individual health insurance policies or hospital or 25 medical service contracts in this state and that issues more 26 than 60 percent of all small group health insurance policies 27 or hospital or medical service contracts in this state. For 28 such a company or corporation, the commissioner is required 29 to make a determination of financial reserves necessary for 30 the company or corporation to meet its obligations under 31 its policies or contracts issued in this state. The bill 32 authorizes the commissioner to order the company or corporation 33 to distribute any excess reserves to its policyholders or 34 contract subscribers. 35 -1- LSB 5458XS (2) 85 rj/rj 1/ 1