The bill amends the Code of West Virginia to enhance regulatory oversight of insurance holding company systems by introducing new requirements for member insurance companies. Key provisions include the annual filing of a group capital calculation and results from a liquidity stress test, both adhering to the National Association of Insurance Commissioners (NAIC) frameworks. The Insurance Commissioner is granted authority to require companies in hazardous financial conditions to secure a deposit or bond for protection. Additionally, the bill clarifies definitions related to insurance holding companies and mandates that the ultimate controlling person of each insurer file an annual enterprise risk report, while ensuring the confidentiality of sensitive information.

Further, the bill establishes standards for transactions within insurance holding company systems, emphasizing fair terms and adequate surplus for policyholders. It prohibits domestic insurers from engaging in transactions that circumvent statutory review thresholds and mandates independent board composition. The commissioner’s authority is expanded regarding supervision and receivership proceedings, particularly concerning affiliates, and it outlines the process for seeking injunctions against regulatory violations. Overall, the legislation aims to bolster financial stability and regulatory compliance within the insurance sector in West Virginia.

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