HB 2006 Summary

• Adds new definitions to insurance holding company system regulations including "group capital calculation instructions," "liquidity stress test framework," and "scope criteria" to establish requirements for financial assessments.

• Requires ultimate controlling persons of registered insurers to file annual group capital calculation reports with the lead state director/commissioner in accordance with national association of insurance commissioners instructions, with specified exemptions for certain insurance holding company systems.

• Establishes liquidity stress test framework requirements for selected insurers, requiring filings of stress test results according to national association of insurance commissioners procedures and scope criteria reviewed at least annually.

• Adds standards for affiliate transactions including requirements that insurers maintain control over records, data, and premium funds held by affiliates, with provisions allowing the director to require deposits or bonds if an insurer is in hazardous financial condition.

• Expands director authority to share confidential information with third-party consultants and other regulators while maintaining confidentiality protections, and prohibits misleading statements about group capital calculations and liquidity stress test results.