HB 182 Specifies default interest rates for voluntary payments made by insurance companies

     Handler: Crawford

Current Bill Summary

- Prepared by Senate Research -


HB 182 - Currently, if an insurance company is required to pay interest on any claims, refunds, penalties, or payments pursuant to a market conduct examination, investigation, stipulation of settlement agreement, voluntary forfeiture agreement, or any other remedial action ordered by the Department of Insurance, Financial Institutions, and Professional Registration, such funds shall bear interest at the annual adjusted prime interest rate, in an amount not to exceed 9% per year. This rate does not apply to payments subject to a statute in which an interest rate is otherwise specified, including the prompt payment statute.

This act specifies that payments made voluntarily shall be subject to this interest rate as well.

This act is identical to a provision in the truly agreed to and finally passed CCS/HCS/SB 54 (2019).

ERIC VANDER WEERD


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