HB 2271 Summary

• Adopts revisions to the National Association of Insurance Commissioners' model laws governing insurance regulation, including updates to reinsurance credit standards, life insurance valuation requirements, and nonforfeiture benefits.

• Modifies reinsurance credit rules to establish a new certified reinsurer category with reduced security requirements based on financial strength ratings, while maintaining standards for accredited and trust-based reinsurers.

• Implements new Standard Valuation Law provisions allowing companies to use principle-based valuation methods for life insurance reserves and requires appointed actuary opinions on reserve adequacy.

• Updates Standard Nonforfeiture Law for life insurance with revised calculation methods for cash surrender values and adjusted premiums, effective January 1, 1956 and later for policies issued after the valuation manual operative date.

• Enhances insurance holding company system oversight by establishing supervisory colleges for international operations, requiring enterprise risk reporting, strengthening board independence requirements, and expanding examination and confidentiality provisions.