The bill amends the Code of West Virginia to enhance regulatory oversight of insurance holding company systems. It introduces new requirements for insurers, including the annual filing of a group capital calculation and results from a liquidity stress test that aligns with the National Association of Insurance Commissioners (NAIC) framework. The insurance commissioner is granted authority to mandate deposits or bonds for insurers in precarious financial situations and to ensure that records held by affiliates remain under the insurer's control. Additionally, the bill emphasizes the confidentiality of the group capital calculation and liquidity stress test information, while prohibiting the sharing of certain data with the NAIC.

Key provisions also include the requirement for at least one-third of the directors and committee members of domestic insurers to be independent, and the commissioner’s oversight of agreements between insurers and their affiliates. The bill updates confidentiality provisions regarding documents obtained during examinations, allowing for the sharing of confidential information with other regulatory agencies while maintaining confidentiality. It also clarifies the definitions of terms related to insurance holding companies and modifies existing provisions regarding injunctions and the voting of securities, ensuring compliance with regulatory standards and enhancing the financial stability of insurers within these systems.

Statutes affected:
Introduced Version: 33-27-2, 33-27-4, 33-27-5, 33-27-6a, 33-27-7, 33-27-8