The bill amends the insurance holding company system regulatory act to establish specific requirements for group capital calculations, group capital ratios, and liquidity stress tests. It introduces provisions that clarify the authorized use of these calculations and test results, explicitly stating they should not be used to rank insurers or insurance holding company systems. The bill also prohibits the dissemination of misleading 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 subject to registration must file an annual group capital calculation and the results of a liquidity stress test, as directed by the lead state commissioner, while outlining exemptions for certain insurance holding company systems.

Moreover, the bill enhances confidentiality provisions related to 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, exempt from public records laws. 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