SB 107 Summary

• Establishes comprehensive risk-based capital requirements for domestic insurers and fraternal benefit societies, including mandatory reporting to the National Association of Insurance Commissioners by March 1 annually

• Creates new Chapter 23 requiring insurers to maintain risk management frameworks and conduct own risk and solvency assessments, with exemptions for insurers with less than $500,000,000 in direct written premium

• Expands insurance holding company system regulations requiring registration, disclosure of affiliated transactions, supervisory college participation, and enterprise risk reporting to the director

• Increases civil penalties to $200 per day (maximum $50,000) for late registration filings and establishes new class C felony penalties for knowing violations or false statements by insurers and holding company officials

• Strengthens producer-controlled insurer requirements by mandating written contracts, audit committees, fiduciary obligations, and compliance with AS 21.22 regulations; effective July 1, 2015