The bill amends various sections of the Idaho Code concerning insurance holding company systems, introducing new definitions such as "Group capital calculation instructions" and "NAIC liquidity stress test framework," which align with national standards effective from January 1, 2024, and December 13, 2022, respectively. It revises the definition of "Enterprise risk" to clarify its implications on an insurer's financial condition and establishes provisions for group capital calculation reporting and liquidity stress testing. The registration process for insurers within these systems is also detailed, requiring them to file a registration statement that includes comprehensive financial information and transactions with affiliates, while allowing for consolidated registration statements for affiliated insurers.

Additionally, the bill sets specific percentage thresholds for various transactions that require notification to the director, ensuring that any attempts to circumvent these thresholds are subject to scrutiny. It enhances the confidentiality of documents obtained during regulatory examinations, allowing the director to share information with other agencies while maintaining confidentiality. The treatment of group capital calculations and liquidity stress tests as regulatory tools is also clarified, prohibiting their public dissemination to prevent misuse. The act is scheduled to take effect on January 1, 2026, aiming to strengthen regulatory oversight and ensure the financial stability of insurers within holding company systems.

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