Senate Bill No. 537 Summary

• Increases investment limit in subsidiaries for domestic insurers from five percent to ten percent of the insurer's assets or fifty percent of surplus as regards policyholders.

• Adds "enterprise risk" definition to identify activities, circumstances, or events involving one or more affiliates that could materially adversely affect an insurer's financial condition or liquidity.

• Requires ultimate controlling persons of insurers subject to registration to file annual enterprise risk reports by May 1, 2015, and annually thereafter identifying material risks within the insurance holding company system.

• Expands director's examination authority to assess enterprise risk posed by affiliates, ultimate controlling parties, and insurance holding company systems on a consolidated basis, and permits participation in supervisory colleges with other state, federal, and international regulators.

• Establishes confidentiality protections for information obtained during examinations and allows the director to share information with regulatory agencies and the National Association of Insurance Commissioners under written agreements that maintain confidentiality and specify ownership and use restrictions.