The bill amends the Code of West Virginia to enhance regulatory oversight of insurance holding company systems by introducing new requirements for insurers. Key provisions include the obligation for insurers to file an annual group capital calculation and results from a liquidity stress test, following guidelines from the National Association of Insurance Commissioners (NAIC). The Insurance Commissioner is empowered to mandate that insurers in precarious financial situations secure a deposit or bond for protection. Additionally, the bill clarifies that all records held by affiliates are the property of the insurer and remain under the insurer's control, while also ensuring that affiliates are subject to the jurisdiction of the Insurance Commissioner.

Moreover, the bill establishes reporting requirements for dividends and distributions to shareholders, outlines registration and information disclosure processes for insurers, and allows for exemptions from certain requirements. It emphasizes fair transaction standards within insurance holding company systems and mandates that no domestic insurer may pay extraordinary dividends without prior notice to the commissioner. The bill also introduces provisions for the supervision of agreements involving affiliates, ensuring they are subject to regulatory jurisdiction. Confidentiality of documents obtained during examinations is reinforced, and the commissioner is granted authority to share information with other regulatory agencies under strict conditions. The effective date for the bill 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