HB 164 - Insurance Regulation Summary

• Expands risk-based capital requirements to include property and casualty insurers and fraternal benefit societies, not just life and health insurers, with revised calculation formulas for different capital level thresholds.

• Creates new Chapter 23 establishing risk management framework and own risk and solvency assessment (ORSA) requirements for insurers with annual premiums exceeding $500 million or insurance groups exceeding $1 billion.

• Strengthens insurance holding company oversight through expanded registration requirements, enterprise risk reporting, supervisory college participation, and civil/criminal penalties for violations including class C felonies for willful breaches.

• Adds provisions for director authority to participate in supervisory colleges with other regulators, share confidential information, and examine insurers and affiliates to assess financial condition and enterprise risk on a consolidated basis.

• Implements exemptions for smaller property and casualty insurers and health organizations writing less than $2 million in direct annual premiums, and allows controlled insurers operating under runoff supervision without full regulatory control.