H.B. 383 Summary

• Establishes Own Risk and Solvency Assessment (ORSA) requirements for North Carolina insurers, requiring annual risk management frameworks and assessments aligned with NAIC guidance, with exemptions for insurers with less than $500 million in annual direct written premium and insurance groups with less than $1 billion in annual premium.

• Creates confidential reporting procedures for ORSA Summary Reports to the Insurance Commissioner, with protections preventing disclosure of proprietary information and allowing Commissioner to share findings with other regulators and the NAIC under written agreements.

• Adds new "certified reinsurer" category to reinsurance credit provisions, allowing assumptions with reduced security requirements (0-100% depending on rating) for reinsurers meeting $250 million capital standards and maintaining financial strength ratings from approved agencies.

• Modifies accreditation requirements for reinsurers and updates security provisions for reinsurance arrangements, including trust fund standards and liability requirements for various reinsurer categories.

• Requires Department of Insurance to adopt rules on annuity transaction suitability substantially similar to NAIC model regulations, with most provisions effective January 1, 2018-2019.