The bill amends the Code of West Virginia to enhance regulatory oversight of insurance holding company systems by introducing new requirements for insurance companies within these systems. Key provisions include the annual filing of a group capital calculation and the results of a liquidity stress test with the lead state insurance commissioner, which must adhere to the National Association of Insurance Commissioners (NAIC) framework. The bill also clarifies that records held by affiliates remain the property of the insurer and establishes the commissioner’s jurisdiction over affiliates in supervision or receivership proceedings. Additionally, it outlines standards for transactions within these systems, emphasizing fair terms and adequate surplus for policyholders, while introducing new definitions and terms related to insurance regulation.

Furthermore, the bill mandates that at least one-third of the board of directors and committee members of domestic insurers be independent individuals. It updates confidentiality provisions regarding documents obtained during examinations, ensuring that sensitive information, such as group capital calculations and liquidity stress test results, is kept confidential. The bill allows for sharing this information with other regulatory agencies under confidentiality agreements and replaces "National Association of Insurance Commissioners" with "NAIC" for streamlined reference. Overall, these amendments aim to improve the financial stability and governance of insurance companies in West Virginia, ensuring compliance with national standards and maintaining the state's accreditation with the NAIC.

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