The bill amends the insurance holding company system regulatory act to establish clear requirements for group capital calculations and liquidity stress tests. It introduces provisions that clarify the authorized use of these calculations and results, explicitly stating that they should not be used to rank insurers or insurance holding company systems. The bill also prohibits misleading statements regarding these calculations while allowing insurers to rebut materially false claims under certain conditions. Additionally, it includes new definitions related to group capital calculations and liquidity stress tests, and emphasizes the confidentiality of the reported information.

Moreover, the bill mandates that the ultimate controlling person of every insurer subject to registration must file an annual group capital calculation and the results of liquidity stress tests as directed by the lead state commissioner. It outlines exemptions for certain insurance holding company systems and establishes criteria for determining which insurers fall under the NAIC liquidity stress test framework. The bill also introduces provisions regarding the confidentiality and ownership of information shared with the National Association of Insurance Commissioners (NAIC) or designated third-party consultants, ensuring that such information remains confidential and is not stored in a permanent database after analysis. The Department of Insurance is tasked with creating necessary rules for implementation, and the act is set to take effect on July 1, 2025, with some sections effective immediately upon passage.

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