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, ensuring that this information remains confidential.

Moreover, the bill includes new definitions related to group capital calculations and liquidity stress tests, and it amends confidentiality provisions regarding sensitive information handling. It requires that recipients of shared information with the National Association of Insurance Commissioners (NAIC) or designated third-party consultants agree in writing to maintain confidentiality and verify their legal authority. The bill clarifies that ownership of the shared information remains with the commissioner, prohibits the NAIC or consultants from storing this information in a permanent database, and establishes that all documents in their possession 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