The bill amends the Insurance Holding Company Regulatory Act in Arkansas by introducing new definitions and requirements for insurance holding companies, including "Group capital calculation instructions," "NAIC liquidity stress test framework," and "Scope criteria." These additions establish guidelines for liquidity stress testing and capital calculations as directed by the National Association of Insurance Commissioners (NAIC). The bill also modifies existing provisions related to the organization and investment in subsidiaries by domestic insurers, allowing for a broader range of business activities and clarifying investment limits. Furthermore, it revises the approval process for mergers and acquisitions involving domestic insurers, emphasizing public hearings and the criteria for the Insurance Commissioner’s approval or disapproval of such transactions.

Additionally, the bill mandates that insurance holding companies perform a group capital calculation as specified by the Board of Governors of the Federal Reserve System and outlines conditions under which the lead state commissioner can require calculations from non-U.S. based holding companies. It emphasizes fair terms in transactions between insurers and affiliates, introduces requirements for financial disclosures, and enhances confidentiality protections for sensitive information related to group capital calculations and liquidity stress tests. The bill also repeals a previous provision regarding timely filing of registration statements, streamlining the regulatory process while ensuring that information remains confidential and is not subject to public disclosure without prior consent from the insurer.

Statutes affected:
SB 236: 23-63-503, 23-63-505, 23-63-801, 23-63-510, 23-63-506, 23-63-527(b), 23-63-528(b), 23-63-528(c), 23-63-506(b), 23-63-506(a), 23-63-514(c), 23-63-514(k), 23-63-514, 23-63-515(a), 23-63-517(a)