The bill amends the Code of West Virginia to enhance the regulatory framework for insurance holding company systems. It introduces new requirements for insurers within these systems, including the obligation to file an annual group capital calculation and results from a liquidity stress test, in line with the National Association of Insurance Commissioners (NAIC) guidelines. The Insurance Commissioner is empowered to mandate that insurers in precarious financial situations secure a deposit or bond for protection. Additionally, the bill ensures that records held by affiliates remain under the insurer's control and establishes the Insurance Commissioner's jurisdiction over affiliates during supervision or receivership proceedings.

Moreover, the bill outlines a detailed registration process for insurers, specifying the necessary information regarding financial conditions, ownership, and management structures. It mandates the reporting of dividends to shareholders and allows for the termination of registration if an insurer exits a holding company system. The bill also introduces provisions for the supervision of domestic insurers and their affiliates, particularly concerning agreements integral to the insurer's operations, and emphasizes the confidentiality of documents obtained during regulatory examinations. The effective date for these changes is set for January 1, 2026.

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