Substitute Senate Bill No. 411 - Summary

• Establishes comprehensive regulation of insurance holding company systems by requiring domestic insurance companies to register with the Insurance Commissioner and file annual reports disclosing affiliated transactions, financial condition, and ownership structure.

• Creates preacquisition notification and review process for acquisitions resulting in change of control of insurance companies, with thirty-day waiting periods and standards to prevent substantial reduction of competition or monopolistic effects.

• Introduces "enterprise risk" concept requiring ultimate controlling persons to file annual enterprise risk reports identifying material risks within insurance holding company systems that could adversely affect insurers, with reports kept confidential and privileged.

• Restricts post-acquisition activities for two to three years, including limitations on dividend payments, acquisitions of other entities, loans, and material transactions without prior commissioner approval.

• Authorizes Commissioner to examine insurance companies and their affiliates to assess financial condition and compliance, and to share confidential examination information with state, federal, and international regulatory officials who agree to maintain confidentiality.