This bill amends several sections of the North Dakota Century Code to enhance the regulation of insurers within an insurance holding company system. Key updates include the introduction of new definitions such as "group capital calculation instructions" and "liquidity stress test framework," which align with standards from the National Association of Insurance Commissioners (NAIC). The bill requires the ultimate controlling person of each insurer to file an annual group capital calculation, with exemptions for certain insurance holding company systems. It also clarifies the definition of materiality related to these calculations and mandates that all insurers in North Dakota register with the commissioner, providing detailed financial and management information.

Additionally, the bill establishes new requirements for insurers under the NAIC liquidity stress test framework, including the obligation for the ultimate controlling person to file liquidity stress test results with the lead state insurance commissioner. It introduces provisions for insurers in hazardous financial conditions to secure deposits or bonds for protection and clarifies that records held by affiliates remain the property of the insurer. The bill also enhances confidentiality protections for sensitive financial information, ensuring that group capital calculations and liquidity stress test results are kept confidential unless disclosure serves the interests of policyholders or shareholders. Overall, these amendments aim to strengthen regulatory oversight and ensure the financial stability of insurers in North Dakota.

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