HB2962 Summary

• Amends the Illinois Insurance Code Article VIII 1/2 to comprehensively revise insurance holding company system regulations, including definitions of key terms like "acquiring party," "associated person," "enterprise risk," and "non-operating holding company."

• Requires ultimate controlling persons of registered companies to file annual enterprise risk reports identifying material risks within the insurance holding company system that could adversely affect the company, filed with the lead state commissioner.

• Establishes confidentiality and information-sharing protocols for enterprise risk reports, allowing the Director to share such reports with other state/federal regulators, the NAIC, and supervisory college members under written agreements protecting trade secrets.

• Creates supervisory college authority allowing the Director to participate in multi-state regulatory forums to assess business strategy, financial position, risk management, and governance of insurance holding company systems with international operations.

• Modifies acquisition of control requirements and competitive standards for insurance company transactions, adds requirements for independent directors and board committees, and establishes procedures for consolidated multi-state hearings on acquisitions requiring multiple state approvals.