The bill amends the Insurance Holding Company Regulatory Act in Arkansas by introducing new definitions and requirements aimed at enhancing regulatory oversight of insurance holding companies. Key definitions include "Group capital calculation instructions," "NAIC liquidity stress test framework," and "Scope criteria." The bill modifies existing provisions related to the organization and investment in subsidiaries by domestic insurers, allowing for greater operational flexibility while ensuring that investments remain within specified limits. It also revises the approval process for mergers and acquisitions involving domestic insurers, emphasizing public hearings and the assessment of competition and financial stability.

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, with the lead state commissioner responsible for requesting this calculation. It establishes new provisions for material transactions between insurers and their affiliates, ensuring fairness and the maintenance of financial health. The bill introduces confidentiality measures for information related to group capital calculations and liquidity stress tests, stipulating that such information is not subject to subpoena or public disclosure without prior written consent from the insurer, unless public interest necessitates it. Overall, these amendments aim to strengthen the financial health and regulatory compliance of insurance companies in Arkansas while protecting policyholders' interests.

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)
Act 261: 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)