The Holding Company System Amendment Act of 2026 updates the Holding Company System Act of 1993 to improve the regulatory framework governing insurance holding companies. It introduces new definitions such as "group capital calculation instructions," "lead state," and "NAIC liquidity stress test framework," which clarify the processes for group solvency supervision and liquidity stress testing. The bill requires the ultimate controlling person of each insurer to file an annual group capital calculation and liquidity stress test results with the lead state commissioner, while also providing specific exemptions for certain insurance holding company systems. Additionally, it revises provisions related to financial oversight in hazardous conditions, allowing the Commissioner to mandate deposits or bonds to secure contractual obligations.

The legislation also emphasizes the confidentiality of sensitive information related to group capital calculations and liquidity stress tests, allowing for sharing with regulatory agencies under strict confidentiality agreements. It establishes new requirements for handling confidential information shared with the National Association of Insurance Commissioners (NAIC) or designated third-party consultants, ensuring that recipients maintain confidentiality and that ownership of the information remains with the Commissioner. The bill prohibits public statements regarding group capital calculations and liquidity stress test results, while allowing for rebuttals to false statements. It includes an amendment to replace the abbreviation "NAIC" with the full phrase "NAIC, or a third-party consultant designated by the Commissioner" in one instance and adopts a fiscal impact statement as required by legislative procedures. The act will take effect following approval by the Mayor and a 30-day congressional review period.