The bill amends the North Dakota Century Code to enhance the regulation of insurers within insurance holding company systems. 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. Insurers are now required to file annual registration statements detailing their financial condition and ownership, as well as an enterprise risk report and group capital calculation from the ultimate controlling person. The bill also clarifies that the definition of materiality for disclosures does not apply to the group capital calculation or liquidity stress test framework, ensuring accurate reporting of relevant information.

Additionally, the bill establishes requirements for insurance holding companies to file group capital calculations if they no longer meet exemption criteria and mandates annual liquidity stress test results from the ultimate controlling person. It emphasizes fair and transparent transactions between insurers and affiliates, allows the commissioner to require deposits for insurers in financial distress, and clarifies that records held by affiliates remain the property of the insurer. The bill also enhances confidentiality provisions for documents obtained during examinations, ensuring that sensitive calculations and stress test results are protected from public disclosure unless deemed necessary by the commissioner.

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