The bill amends several sections of the North Dakota Century Code to enhance the regulation of insurers within an insurance holding company system. It introduces key definitions such as "group capital calculation instructions" and "liquidity stress test framework," aligning with standards from the National Association of Insurance Commissioners (NAIC). Insurers are now required to file a registration statement detailing their financial condition, ownership, and transactions with affiliates. The ultimate controlling person of each insurer must also submit an annual enterprise risk report and a group capital calculation, with certain exemptions for specific insurance holding company systems. Notably, the definition of materiality for registration statements will not apply to the group capital calculation or liquidity stress test framework.

Additionally, the bill establishes new requirements for insurers under the NAIC liquidity stress test framework, mandating that the ultimate controlling person file the results of their liquidity stress test with the lead state insurance commissioner. It outlines criteria for determining an insurer's inclusion in the liquidity stress test framework and emphasizes consistency in these determinations. The bill also enhances standards for insurers in hazardous financial conditions, requiring them to secure a deposit or bond for protection as determined by the commissioner. Furthermore, it expands the commissioner's jurisdiction over affiliates involved with domestic insurers and enhances the confidentiality of certain financial documents, while also including provisions to prevent misleading advertisements related to group capital calculations and liquidity stress tests.

Statutes affected:
PREFILED: 26.1-10-01, 26.1-10-04, 26.1-10-05, 26.1-10-07
Enrollment: 26.1-10-01, 26.1-10-04, 26.1-10-05, 26.1-10-07
INTRODUCED: 26.1-10-01, 26.1-10-04, 26.1-10-05, 26.1-10-07