INSURANCE HOLDING COMPANIES                                                                                                               H.B. 6297-6303:

                                                                                                                                                                SUMMARY OF DISCHARGED BILL

House Bills 6297 through 6303 (as discharged)

Sponsor:   Representative Andrew W. Beeler (S.B. 6297)

                            Representative Ken Borton (S.B. 6298)

                            Representative Mike Harris (S.B. 6299)

                            Representative Sarah Anthony (S.B. 6300)

                            Representative Richard M. Steenland (S.B. 6301)

                            Representative Tim Sneller (S.B. 6302)

                            Representative Julie Calley (S.B. 6303)

House Committee:   Rules and Competitiveness

Senate Committee:   Insurance and Banking (discharged)

Date Completed:   12-7-22

CONTENT

House Bill 6297 would amend Chapter 13 (Holding Companies) of the Insurance Code to add various definitions.

House Bill 6298 would amend Chapter 13 of the Code to specify that a sale, purchase, exchange, loan, extension of credit, or investment involving 0.5% or less of an insurer's admitted assets on the preceding December 31 would not be material for purposes of an annual group capital calculation under Section 1325b, which House Bill 6301 would add, or a National Association of Insurance Commissioners (NAIC) liquidity stress test under Section 1325c, which House Bill 6302 would add.

House Bill 6299 would amend Chapter 13 of the Code to delete a provision specifying that an annual enterprise risk report is not subject to subpoena or discovery, it not admissible in evidence in a private civil or administrative action, and is not subject to the Freedom of Information Act.

House Bill 6300 (H-1) would amend Chapter 13 of the Code to do the following:

 --       Modify various provisions governing the disclosure of certain documents, materials, and other information in the Department of Insurance and Financial Services's (DIFS's) possession or control.

 --       Prohibit the Director from disclosing certain information reported and provided to DIFS under Sections 1325b and 1325c.

 --       Subject a third-party consultant designated by the Director to various disclosure and confidentiality provisions.

 --       Specify that a group capital calculation and resulting group capital ratio required under Section 1325b and the NAIC liquidity stress test and its results and supporting disclosures under Section 1325c would be regulatory tools for assessing group risk and capital adequacy and group liquidity risks, respectively, and would not be intended as a means to rank insurers or insurance holding company systems.

 --       Prescribe various disclosure requirements.

House Bill 6301 would add Section 1325b to Chapter 13 of the Code to do the following:

 --       Require the ultimate controlling person of an insurer subject to registration to file with the registration an annual group capital calculation that met certain requirements.

 --       Require the lead state commissioner to require the group capital calculation for United States operations of any non-US based insurance holding company system if it were considered appropriate by the lead state commissioner for prudential oversight and solvency monitoring purposes or for ensuring the competitiveness of the insurance marketpl