The bill amends various sections of the Idaho Code to enhance the regulatory framework governing insurance holding company systems. It introduces new definitions, such as "Group capital calculation instructions" and "NAIC liquidity stress test framework," aligning state regulations with national standards set by the National Association of Insurance Commissioners (NAIC). The bill also revises existing definitions, including "Enterprise risk," to clarify their implications for an insurer's financial condition. New provisions are established for group capital calculation reporting and liquidity stress testing, which aim to improve oversight and ensure the financial stability of insurers operating within holding company systems.

Additionally, the bill outlines the registration process for insurers within these systems, detailing the necessary information for registration statements and the responsibilities of insurers regarding corporate governance. It mandates that the ultimate controlling person of every insurer must file an annual group capital calculation, with exemptions for smaller holding companies under specific conditions. The bill also sets specific percentage thresholds for various transactions that require notification to the director, ensuring transparency and regulatory compliance. Furthermore, it enhances the confidentiality of documents obtained during regulatory examinations and investigations, allowing for information sharing with other agencies while maintaining confidentiality. The act is scheduled to take effect on January 1, 2026.

Statutes affected:
Bill Text: 41-3802, 41-3809, 41-3810, 41-3816