Relating to withdrawal requirements for insurance companies, insurance company affiliates, and other entities engaged in the business of insurance

This bill relates to withdrawal requirements for insurance companies, insurance company affiliates, and other entities engaged in the business of insurance. The bill requires an insurer, prior to withdrawing, to file a withdrawal plan (plan) with the commissioner of insurance (commissioner) if the insurer intends to reduce the insurer’s total annual premium volume in the state by 50 percent or more, intends to reduce the insurer’s total annual premium in the state in a line of insurance by 75 percent or more, or intends to reduce the insurer’s total annual premium volume in the state in a line of private passenger automobile insurance, homeowners insurance, or dwelling property insurance by 50 percent or more. _____ exchange, a lloyd’s plan, or a state or county mutual insurance association. “Insurer” is defined in the bill. If the plan meets all of the requirements as described in the bill, the commissioner shall approve the plan. If the commissioner finds that a plan does not meet all requirements, the commissioner may modify, restrict, limit, or deny the withdrawal plan. An insurer may request a hearing on the commissioner’s decision as described in the bill. An insurer that withdraws from writing all lines of insurance in the state shall not, without prior approval of the commissioner, resume writing insurance in the state for a minimum of five years. A violation of the withdrawal requirements constitutes an unfair method of competition and unfair or deceptive act or practice. The commissioner may adopt rules to administer and enforce the bill.