The bill amends the insurance holding company system regulatory act to establish specific requirements for group capital calculations, liquidity stress tests, and related disclosures. It introduces provisions that clarify the authorized use of these calculations and test results, emphasizing that they should not be used to rank insurers or insurance holding company systems. The bill also prohibits misleading public statements regarding these calculations and results, while allowing insurers to rebut materially false statements under certain conditions. Additionally, it mandates that the ultimate controlling person of every insurer file annual group capital calculations and liquidity stress test results with the lead state insurance commissioner, enhancing confidentiality provisions to protect sensitive information.

Moreover, the bill includes new provisions regarding the confidentiality and ownership of information shared with the National Association of Insurance Commissioners (NAIC) or designated third-party consultants. It requires that recipients of such information agree in writing to maintain its confidentiality and clarifies that ownership remains with the commissioner. The bill prohibits the NAIC or designated consultants from storing shared information in a permanent database after analysis and establishes that all related documents are confidential and privileged. The Department of Insurance is tasked with promulgating necessary rules for implementation, and the act is set to take effect on July 1, 2025, with certain sections effective immediately upon passage.

Statutes affected:
Draft 25LSO-0007: 26-44-101, 26-44-104, 26-44-110