Committee unanimously advances insurance investment update to modernize insurer portfolio rules

Representative Walter presented Senate Bill 49 on behalf of the Senate sponsor; the Insurance Commissioner and staff provided detail. The bill updates decades-old statutory language governing insurer investments, adopts model provisions consistent with the National Association of Insurance Commissioners, and requires insurers to maintain written investment plans approved by their boards.

Nut graf: Supporters said the current statute dates to the 1980s and needed technical modernization to reflect modern financial instruments, diversification standards and appropriate accountability. The bill was the product of an interim committee and industry input and was passed unanimously by the committee.

Insurance Commissioner staff explained the bill increases flexibility for insurers while imposing minimum financial-security guardrails and board oversight requirements, and that the state treasurer reviewed and suggested a technical change (replacing the word "primary" with "sole") to better align fiduciary responsibilities. The commissioner said the bill balances flexibility with accountability and adopted input from domiciled carriers and national models.

There was no public testimony in opposition at the committee hearing. Representative Matthews moved to pass the bill out favorably; the committee voted unanimously to do so.

Ending: SB 49 moves forward with unanimous committee approval; proponents said it will update outdated statutory language, allow the department and industry to better manage insurer portfolios, and enhance diversification and governance requirements.