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HB 20-1136

  • Colorado House Bill
  • 2020 Regular Session
  • Introduced in House Feb 28, 2020
  • Passed House Feb 27, 2020
  • Passed Senate Mar 14, 2020
  • Governor

Insurance Investment Regulation Modernization

Abstract

Domestic insurer - regulation of investments. The act amends the statutes that regulate the types and amounts of investments a domestic insurer may make, including investments in bonds and other evidences of indebtedness. Section 1 of the act clarifies the types of indebtedness that may be invested in and allows the domestic insurer to invest in the debts of an issuer that is in default in the payment of interest on the debt. Preexisting law allows a domestic insurer to invest in first-priority mortgage loans in the United States and Canada. In connection with this, section 2 : Authorizes investment in lower-priority loans if the holder of the lower-priority loan holds the first-priority loan; Repeals the requirement that the mortgaged land have a building, be used for agriculture or pasture, or be income-producing; Expands the requirement that improvements to the land have fire insurance to a requirement that these improvement have casualty insurance; and Authorizes domestic insurers to acquire mortgage loans for land located in other foreign jurisdictions that have a sovereign debt rating of "1" from the securities valuation office of the National Association of Insurance Commissioners if these assets do not exceed 10% of the domestic insurer's investments. Preexisting law allows a domestic insurer to invest in real estate for income. In connection with this, section 3 broadens the current definition of "real estate", which covers fee simple ownership and leasehold estates, to include all interests in property, including mineral estates. Preexisting law allows a domestic insurer to invest in preferred or common stock in businesses within the United States and Canada. In connection with this, section 4: Broadens current law to allow investment in equity interests of businesses other than preferred or common stock, but limits the aggregate value of all equity interests that may be admitted assets to 10% of the company's admitted assets; Repeals the requirement that the business not be in arrears as to dividends for the last 3 years; Repeals the requirement that any sinking fund for preferred stock must be current; Repeals the requirement that a corporation had net earnings available for dividends on its outstanding common stock in each of the 3 fiscal years immediately preceding the date of acquisition; Repeals the requirement that common stock must be registered on a national securities exchange or regularly traded on a national or regional basis; Exempts mutual funds, open-end index funds, or exchange-traded index funds from a prohibition on investing, in one company, more than 2% of the insurer's assets in common stock or 5% of these assets in any stock; Limits the amount of equity that is not listed on a nationally registered securities exchange or securities market to 5% of the domestic insurer's assets; and Authorizes a domestic insurer to invest in equity interests in businesses created in other foreign jurisdictions that have a sovereign debt rating of "1" from the securities valuation office of the National Association of Insurance Commissioners if these assets do not exceed 3% of the domestic insurer's investments. Preexisting law allows a domestic insurer to invest in money market mutual funds. Section 9 requires the funds to comply with certain federal regulations and requires government-backed funds to meet certain standards of the National Association of Insurance Commissioners. Sections 5 through 8 make conforming amendments.(Note: This summary applies to this bill as enacted.)

Bill Sponsors (3)

Marc Snyder

  • Democratic
  • lower
  • 18
Primary

Chris Hansen

  • Democratic
  • upper
  • 31
Primary

Jack Tate

  • Republican
  • upper
  • 27
Primary

Votes


Mar 14, 2020

House

Feb 27, 2020

BILL

Pass

House

Mar 14, 2020

AMEND

Pass

Senate

House

AMEND

Pass

Senate

BILL

Pass

Senate

Actions


Mar 23, 2020

Office of the Governor

Sent to the Governor

Mar 17, 2020

House

Signed by the Speaker of the House

Senate

Signed by the President of the Senate

Mar 14, 2020

House

House Considered Senate Amendments - Result was to Concur - Repass

Senate

Senate Third Reading Passed with Amendments - Floor

Mar 13, 2020

Senate

Senate Second Reading Special Order - Passed - No Amendments

Mar 11, 2020

Senate

Senate Committee on Business, Labor, & Technology Refer Unamended to Senate Committee of the Whole

  • Referral-Committee
  • Committee-Passage
Business, Labor, & Technology Senate Committee of the Whole

Feb 28, 2020

Senate

Introduced In Senate - Assigned to Business, Labor, & Technology

  • Introduction
Business, Labor, & Technology

Feb 27, 2020

House

House Third Reading Passed - No Amendments

Feb 24, 2020

House

House Third Reading Laid Over Daily - No Amendments

Feb 21, 2020

House

House Second Reading Special Order - Passed with Amendments - Committee, Floor

Feb 18, 2020

House

House Second Reading Special Order - Laid Over Daily - No Amendments

Feb 14, 2020

House

House Second Reading Special Order - Laid Over Daily - No Amendments

Feb 11, 2020

House

House Committee on Business Affairs & Labor Refer Amended to House Committee of the Whole

  • Referral-Committee
  • Committee-Passage
House Committee of the Whole

Jan 16, 2020

House

Introduced In House - Assigned to Business Affairs & Labor

  • Introduction
Business Affairs & Labor

Bill Text

Bill Text Versions Format
Signed Act (None) PDF
Final Act (03/17/2020) PDF
Rerevised (03/14/2020) PDF
Revised (03/13/2020) PDF
Reengrossed (02/27/2020) PDF
Engrossed (02/21/2020) PDF
Introduced (01/16/2020) PDF
PA1 (02/12/2020) PDF
Committee Amendment PDF

Related Documents

Document Format
Fiscal Note FN1 (02/07/2020) PDF

Sources

Data on Open States is updated nightly from the official website of the Colorado General Assembly.

If you notice any inconsistencies with these official sources, feel free to file an issue.