The Utah House passed first substitute House Bill 23 on a 74-0 vote after adopting two amendments that sponsors said tighten reporting by insurance licensees, allow regulators to use captive-insurer fees for oversight and update stop-loss and minimum-group-size rules for small-employer health plans.

Representative Dunnegan, the bill sponsor, told the House the bill “strengthens the reporting requirement for a licensee if they have a judgment against them,” saying regulators are concerned that a licensee under financial pressure might be tempted to misuse policyholder funds. He said the requirement to report judgments should reduce that risk.

Dunnegan also said the bill removes a cap on spending for captive insurance regulation by allowing the Insurance Department to use fees already generated by captive insurers for regulatory purposes without raising the fee. “We started this fund or these captive insurers years ago. They pay a fee and that fee is growing. The department needs some additional money to regulate the captives,” he said.

Sponsor remarks also described updates to the small-employer health market in the bill: “We’re updating the specific stop-loss amounts, the attachment point, and the minimum group size to try to keep the small employer health insurance market as competitive as possible,” Dunnegan said.

Two amendments under Dunnegan’s name were adopted before final passage. Amendment No. 1 was described as allowing reserve funds by local governments “in addition to the public agency mutuals.” Amendment No. 2 was described by the sponsor as fixing overlapping dates already present in the bill.

After the amendments, the House voted on the amended first substitute HB 23. Voting was recorded as 74 yes, 0 no; the bill was sent to the Senate for consideration.

Votes at a glance: First substitute House Bill 23 (Insurance modifications) — Adopted amendments 1 and 2 (voice votes). Final passage: 74 yes, 0 no.

The bill returns to the Senate for its consideration; sponsors said the measure is intended to improve oversight and preserve competition in the small-employer insurance market.