Bill description: Requires insurers to produce a corporate governance disclosure and makes the information confidential.
Analyst’s note: This bill would require that “a domestic insurer, or the insurance group of which the domestic insurer is a member, shall, no later than June 1 of each calendar year, submit to the director a corporate governance annual disclosure (CGAD) that contains the information described in section 41-6404, Idaho Code.” Among other things, that new section of code would require the release of information “necessary to permit the director to gain an understanding of the insurer's or group's corporate governance structure, policies and practices including, without limitation, information concerning policies and practices of the board of directors, the senior governing entity and significant committees thereof, the policies and practices for directing senior management,and the processes by which the board of directors, the senior governing entity, its committees and senior management ensure an appropriate amount of oversight to the critical risk areas impacting the insurer's business activities. The director may request additional information that the director deems material and necessary to provide the director with a clear understanding of the corporate governance policies, the reporting or information system, or the controls implementing those policies.”
Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market?
House Bill 102 creates a new regulatory imposition on the private sector. The insurance industry would have to file reports, information and documents to the government not currently required. (-1)
Does it in any way restrict public access to information related to government activity or otherwise compromise government transparency or accountability?
This bill declares information presented to the government by the insurance industry in furtherance of this new chapter is proprietary and not subject to disclosure. That may well be appropriate, especially given the nature and breadth of the records being obtained by the government. However, the bill goes further to allow the restricted records in the use of regulatory or legal action against the insurer. Making the records exempt from disclosure, even in the event of the state’s legal or regulatory action makes it difficult for the public to fully understand the operations of state government. (-1)
STAY CONNECTED with the latest news, research and opinions from the Gem State.