CS/CS/HB 1271 - Insurer Solvency Summary

• Implements updated insurance holding company system requirements aligned with NAIC standards, including annual enterprise risk reporting by ultimate controlling persons and groupwide supervision for international insurance groups.

• Establishes new valuation standards for life insurance policies and contracts issued after the operative date of the NAIC valuation manual, replacing prior valuation methods with principle-based valuations and requiring actuarial opinions and supporting memoranda.

• Lowers the stock acquisition threshold requiring prior approval from 10 percent to 5 percent of outstanding voting securities for domestic stock insurers and controlling companies.

• Expands solvency regulation to include health maintenance organizations and prepaid limited health service organizations that operate in multiple states, jurisdictions, or countries by subjecting them to risk-based capital requirements.

• Creates new sections establishing supervisory colleges, confidentiality protections for actuarial opinions and valuation materials, and enhanced requirements for insurer annual statements including actuarial opinion summaries.