The bill amends several sections of the North Dakota Century Code to enhance the regulatory framework for insurers within an insurance holding company system. It introduces key definitions such as "group capital calculation instructions" and "liquidity stress test framework," aligning with the National Association of Insurance Commissioners' guidelines. The bill mandates that the ultimate controlling person of each insurer file an annual group capital calculation and the results of a liquidity stress test with the lead state insurance commissioner. Exemptions are provided for certain insurance holding company systems, and the bill emphasizes the importance of consistent criteria for determining an insurer's status within the liquidity stress test framework.

Additionally, the bill strengthens the management and oversight of insurers by requiring those in hazardous financial conditions to secure a deposit or bond for protection. It clarifies that records held by affiliates remain the property of the insurer and must be accessible. The bill also introduces stricter notification requirements for significant transactions and allows insurers, excluding life insurers, to carry forward net income when determining extraordinary dividends. Enhanced confidentiality protections for documents held by the North Dakota insurance department are included, ensuring sensitive information remains secure while prohibiting misleading public statements regarding regulatory calculations. Overall, the amendments aim to improve oversight and risk management practices within the insurance industry.

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