The bill amends the Code of West Virginia to enhance regulatory oversight of insurance holding company systems by introducing new requirements for insurers within these systems. Key provisions include mandates for annual group capital calculations and liquidity stress test results, which must comply with the National Association of Insurance Commissioners (NAIC) frameworks. The Insurance Commissioner is empowered to require insurers in precarious financial situations to 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.

The legislation also outlines a detailed registration process for insurers, requiring comprehensive disclosures about their financial condition, ownership, and transactions with affiliates. It emphasizes the need for fair transaction terms, proper expense allocation, and clear record maintenance within insurance holding company systems. The bill stipulates that a significant portion of the board of directors must be independent and allows for waivers based on the insurer's size and circumstances. Furthermore, it ensures the confidentiality of documents obtained during examinations and investigations, allowing the commissioner 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