AB 553 Summary

• Requires insurers and insurance groups domiciled in California to submit a Corporate Governance Annual Disclosure (CGAD) to the Insurance Commissioner by June 1 each year containing information about corporate governance structure, policies, and practices.

• Designates CGAD documents and related information as confidential and privileged, exempt from public disclosure under the California Public Records Act, not subject to subpoena, and inadmissible as evidence in private civil actions.

• Authorizes the Insurance Commissioner to act as groupwide supervisor for internationally active insurance groups meeting specified criteria (insurers operating in three or more countries, at least 10 percent premiums written outside the U.S., and assets of $50 billion or total gross premiums of $10 billion).

• Empowers the groupwide supervisor to assess enterprise risks, request information from group members, coordinate risk mitigation measures, and engage in supervisory activities with other state, federal, and international regulatory agencies.

• Amends the Insurance Holding Company System Regulatory Act to require tender offer statements, merger statements, and affiliate transaction notifications to be submitted on forms prescribed by the National Association of Insurance Commissioners (NAIC).