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Committee clears Insurance Department 'cleanup bill to modernize licensing and notice rules
Summary
Senate File 52, a Department of Insurance cleanup bill that removes several outdated paperwork requirements and clarifies licensing and notice provisions in Title 26, passed the House Corporations Committee unanimously.
The House Corporations Committee voted to advance Senate File 52, a Department of Insurance bill that makes a series of technical and procedural updates to state insurance statutes.
Deputy Insurance Commissioner Tana Howard told the committee the bill is largely a series of "cleanup" changes: clarifying the phrase "insurance transaction," removing the statutory requirement to send an original paper certificate of authority to licensed insurers, replacing registered mail with certified mail for certain legal notices, and requiring insurers to keep contact information up to date. "This is just updating with the times," Howard said of the removal of the original hard-copy certificate requirement.
The bill also clarifies treatment of temporary or binder policies under cancellation and nonrenewal provisions, and removes a legislatively required disclosure for wellness benefits in individual and group health policies that the department described as outdated and confusing to consumers.
Insurance Commissioner Jeff Rood and Deputy Commissioner Howard said the changes do not alter the substantive rights of policyholders but reduce administrative burden and correct language inconsistencies across Title 26. Howard said the wellness-benefit disclosure was created in the late 1990s and now causes more confusion than clarity.
Representatives of the insurance industry, including the American Council of Life Insurers, the American Property Casualty Insurance Association and Blue Cross Blue Shield of Wyoming, voiced support for the bill and for retaining consistent accreditation and exam standards. The department and witnesses said the changes will streamline regulation without weakening consumer protections.
The committee approved the bill on a roll-call vote and recommended it for floor consideration.
Votes at a glance: Senate File 52, "Insurance Amendments" ' Roll call: Brown (Aye), Heft (Aye), Johnson (Aye), Lucas (Aye), Webb (Aye), Weber (Aye), Locke (absentee aye), Yin (Aye). Tally: 8 ayes, 0 nays, 1 conflict. Outcome: approved by committee.
Next steps: Sponsor to carry the measure to the House floor for further consideration.
