HB 706 Summary

• Defines "group-wide supervisor" and "internationally active insurance group" in the Insurance Holding Company Act; authorizes the Commissioner of Insurance to act as group-wide supervisor for internationally active insurance groups with operations in multiple countries and substantial assets or premiums.

• Requires domestic insurers to notify the Commissioner 30 days before paying extraordinary dividends and prohibits payment if the Commissioner disapproves; establishes threshold of 10% of surplus or net income for what constitutes an extraordinary dividend.

• Requires preacquisition notification to the Commissioner for acquisitions involving insurers and creates new rules for acquisitions not otherwise covered, including competitive standard review and potential sanctions for violations.

• Revises credit for reinsurance requirements to create a new "certified reinsurer" category, establish standards for qualified jurisdictions, and require comprehensive regulation of reinsurance agreements including security arrangements and concentration risk management.

• Creates the "Own Risk and Solvency Assessment Act" requiring insurers above specified premium thresholds to conduct annual enterprise risk assessments and file confidential ORSA Summary Reports with the Commissioner; exempts insurers with less than $500 million in direct written premium.