The bill amends the insurance holding company system regulatory act to establish new requirements for group capital calculations and liquidity stress tests. It introduces definitions such as "group capital calculation instructions" and "NAIC liquidity stress test framework," and mandates that the ultimate controlling person of every insurer must file annual group capital calculations and liquidity stress test results with the lead state insurance commissioner. Importantly, the bill emphasizes that these calculations and results should not be used to rank insurers or insurance holding company systems.

Additionally, the bill revises confidentiality provisions to protect the information related to group capital calculations and liquidity stress tests from public disclosure without the insurer's consent. It specifies that the commissioner may only publish information after notifying the insurer and allowing them an opportunity to be heard. The bill also establishes new provisions regarding the confidentiality of documents shared with the National Association of Insurance Commissioners (NAIC) or third-party consultants, requiring written agreements to maintain confidentiality and ensuring that ownership of the shared information remains with the commissioner. Furthermore, it prohibits the NAIC or consultants from storing shared information in a permanent database and ensures that all related documents are confidential and privileged, exempt from public records laws. The act is set to take effect on July 1, 2025, with certain sections effective immediately upon passage.

Statutes affected:
Introduced: 26-44-101, 26-44-104, 26-44-110
Engrossed: 26-44-101, 26-44-104, 26-44-110