This bill amends various sections of Minnesota Statutes to enhance regulations surrounding financial institutions, particularly focusing on interest rates for loans and contracts for deed, as well as regulatory requirements for insurers. It changes the maximum interest rate for conventional and cooperative apartment loans from the Federal National Mortgage Association's posted yields to the average prime offer rate published by the U.S. Consumer Financial Protection Bureau. Additionally, the bill introduces new requirements for insurers, including the completion of a National Association of Insurance Commissioners (NAIC) liquidity stress test and the filing of group capital calculations. Key amendments include new definitions and provisions regarding control, group capital calculations, and the NAIC liquidity stress test framework, along with the ability for the commissioner to disapprove dividends or distributions that obscure enterprise risk understanding.

Moreover, the bill establishes a framework for liquidity stress tests, mandating that insurers within this framework file their test results with the lead state insurance commissioner. It emphasizes the importance of maintaining stability in the insurance marketplace and outlines the criteria for determining which insurers are included in the liquidity stress test framework. The bill also enhances the confidentiality and security of sensitive financial information related to insurance holding companies, requiring the commissioner to maintain the confidentiality of group capital calculations and liquidity stress test results. Additionally, it allows for the sharing of confidential information with third-party consultants and regulatory agencies under confidentiality agreements, thereby strengthening the regulatory framework and protecting sensitive financial data from public disclosure.

Statutes affected:
Introduction: 47.20, 334.01
1st Engrossment: 47.20, 60D.09, 60D.15, 60D.16, 60D.17, 60D.18, 60D.19, 60D.20, 60D.217, 60D.22, 60D.24, 60D.25, 334.01