Senate
File
2237
-
Introduced
SENATE
FILE
2237
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3062)
A
BILL
FOR
An
Act
relating
to
financial
reporting
by
insurance
holding
1
company
systems.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5164SV
(1)
89
ko/rn
S.F.
2237
Section
1.
Section
511.8,
subsection
22,
paragraph
b,
1
subparagraph
(2),
Code
2022,
is
amended
to
read
as
follows:
2
(2)
Be
between
an
insurer
and
a
conduit
and
be
3
collateralized
by
cash
or
obligations
which
are
eligible
4
under
subsection
1,
2,
3,
5,
19,
or
24
,
are
deposited
with
5
a
custodian
bank
as
defined
in
subsection
21
,
and
are
held
6
under
a
written
agreement
with
the
custodian
bank
that
7
complies
with
subsection
21
and
provides
for
the
proceeds
8
of
the
collateral,
subject
to
the
terms
and
conditions
of
9
the
applicable
collateral
or
other
credit
support
agreement,
10
to
be
remitted
to
the
legal
reserve
deposit
of
the
company
11
or
association
and
to
vest
in
the
state
in
accordance
with
12
section
508.18
whenever
proceedings
under
that
section
are
13
instituted.
Paragraphs
“c”
,
“d”
,
and
“e”
of
this
subsection
are
14
not
applicable
to
investments
in
financial
instruments
used
in
15
hedging
transactions
eligible
pursuant
to
this
subparagraph.
16
As
used
in
this
subparagraph,
“conduit”
means
a
person
within
17
an
insurer’s
insurance
holding
company
system,
as
defined
18
in
section
521A.1,
subsection
7
,
which
aggregates
hedging
19
transactions
by
other
persons
within
the
insurance
holding
20
company
system
and
replicates
them
with
counterparties.
21
Sec.
2.
Section
521A.1,
Code
2022,
is
amended
by
adding
the
22
following
new
subsections:
23
NEW
SUBSECTION
.
5A.
“Group
capital
calculation
instructions”
24
means
the
most
recent
instructions
adopted
by
the
NAIC
group
25
capital
calculation
working
group
or
its
successor,
and
as
26
published
or
amended
by
the
NAIC
in
accordance
with
procedures
27
adopted
by
the
NAIC.
28
NEW
SUBSECTION
.
9A.
“Liquidity
stress
test
framework”
means
29
the
most
recent
NAIC
liquidity
stress
test
framework,
initially
30
adopted
in
2020,
for
life
insurers
meeting
the
scope
criteria,
31
and
as
published
or
amended
by
the
NAIC
in
accordance
with
32
procedures
adopted
by
the
NAIC.
33
NEW
SUBSECTION
.
9B.
“NAIC”
means
the
national
association
34
of
insurance
commissioners.
35
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NEW
SUBSECTION
.
10A.
“Reciprocal
jurisdiction”
means
the
1
same
as
described
in
section
521B.102,
subsection
6,
paragraph
2
“a”
,
subparagraph
(1).
3
NEW
SUBSECTION
.
11A.
“Scope
criteria”
means
the
thresholds
4
detailed
in
the
NAIC
liquidity
stress
test
framework
that
are
5
used
to
establish
the
life
insurer
entities
that
are
subject
to
6
a
liquidity
stress
test
for
a
specific
data
year.
7
Sec.
3.
Section
521A.3,
subsection
2,
paragraph
a,
8
subparagraph
(12),
Code
2022,
is
amended
to
read
as
follows:
9
(12)
An
agreement
by
the
person
required
to
file
the
10
statement
referred
to
in
subsection
1
that
the
person
will
11
provide
the
annual
enterprise
risk
report
specified
in
section
12
521A.4,
subsection
12
,
for
so
long
as
control
exists.
13
Sec.
4.
Section
521A.4,
subsections
3
and
12,
Code
2022,
are
14
amended
to
read
as
follows:
15
3.
Materiality.
Information
need
not
be
disclosed
on
the
16
registration
statement
filed
pursuant
to
subsection
2
if
the
17
information
is
not
material
for
the
purposes
of
this
section
18
subsections
1
through
12
.
Unless
the
commissioner
by
rule
or
19
order
provides
otherwise,
sales,
purchases,
exchanges,
loans
or
20
extensions
of
credit,
or
investments
or
guarantees
involving
21
one-half
of
one
percent
or
less
of
an
insurer’s
admitted
assets
22
as
of
the
next
preceding
December
31
,
are
not
material
for
23
purposes
of
this
section
subsections
1
through
12
.
24
12.
Enterprise
risk
report.
The
ultimate
controlling
person
25
of
every
insurer
subject
to
registration
shall
also
file
an
26
annual
enterprise
risk
report.
The
report
shall,
to
the
best
27
of
the
ultimate
controlling
person’s
knowledge
and
belief,
28
identify
the
material
risks
within
the
insurance
holding
29
company
system
that
could
pose
enterprise
risk
to
the
insurer.
30
The
report
shall
be
filed
with
the
lead
state
commissioner
31
of
the
insurance
holding
company
system
as
determined
by
the
32
procedures
within
the
financial
analysis
handbook
adopted
by
33
the
national
association
of
insurance
commissioners
NAIC
.
34
Sec.
5.
Section
521A.4,
Code
2022,
is
amended
by
adding
the
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following
new
subsections:
1
NEW
SUBSECTION
.
12A.
Group
capital
calculation.
2
a.
The
ultimate
controlling
person
of
every
insurer
3
subject
to
registration
shall
concurrently
file
with
the
4
registration
an
annual
group
capital
calculation.
The
5
calculation
must
be
completed
in
accordance
with
the
group
6
capital
calculation
instructions,
and
must
be
filed
with
the
7
lead
state
commissioner
of
the
insurance
holding
company
system
8
as
determined
by
the
procedures
in
the
most
recent
financial
9
analysis
handbook
published
by
the
NAIC.
As
permitted
by
10
the
group
capital
calculation
instructions,
the
lead
state
11
commissioner
may
allow
a
controlling
person,
other
than
12
the
ultimate
controlling
person,
to
file
the
group
capital
13
calculation.
The
following
insurance
holding
company
systems
14
are
exempt
from
filing
the
group
capital
calculation:
15
(1)
An
insurance
holding
company
system
that
has
only
one
16
insurer
within
its
holding
company
structure,
that
only
writes
17
business
and
is
only
licensed
in
its
domestic
state,
and
that
18
assumes
no
business
from
any
other
insurer.
19
(2)
An
insurance
holding
company
system
that
is
required
to
20
perform
a
group
capital
calculation
specified
by
the
federal
21
reserve
board,
if
the
board
is
able
to
share
the
calculation
22
with
the
lead
state
commissioner
pursuant
to
the
terms
of
23
applicable
information
sharing
agreements.
The
exemption
shall
24
not
apply
if
the
board
does
not
share
the
calculation
with
the
25
lead
state
commissioner.
26
(3)
An
insurance
holding
company
system
whose
non-United
27
States
group-wide
supervisor
is
located
within
a
reciprocal
28
jurisdiction
that
recognizes
the
United
States’
state
29
regulatory
approach
to
group
supervision
and
group
capital.
30
(4)
An
insurance
holding
company
system
that
meets
all
of
31
the
following
criteria:
32
(a)
The
system
provides
information
to
a
lead
state
that
33
meets
the
requirements
for
accreditation
under
the
NAIC
34
financial
standards
and
accreditation
program,
either
directly
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or
indirectly
through
the
group-wide
supervisor
who
has
1
determined
such
information
is
satisfactory
to
allow
the
lead
2
state
to
comply
with
the
group
supervision
approach
as
detailed
3
in
the
most
recent
financial
analysis
handbook
published
by
the
4
NAIC.
5
(b)
The
system’s
non-United
States’
group-wide
supervisor
6
that
is
not
in
a
reciprocal
jurisdiction
recognizes
and
7
accepts,
as
established
by
the
commissioner
by
rule,
the
group
8
capital
calculation
as
the
world-wide
group
capital
assessment
9
for
United
States’
insurance
groups
that
operate
in
that
10
jurisdiction.
11
b.
Notwithstanding
paragraph
“a”
,
subparagraphs
(3)
and
(4),
12
a
lead
state
commissioner,
after
any
necessary
consultation
13
with
appropriate
supervisors
or
officials,
shall
require
the
14
United
States’
operations
of
any
non-United
States-based
15
insurance
holding
company
system
to
file
a
group
capital
16
calculation
if
the
lead
state
commissioner
deems
it
appropriate
17
for
prudential
oversight
and
solvency
monitoring
purposes,
or
18
for
ensuring
the
competitiveness
of
the
insurance
marketplace.
19
c.
Notwithstanding
paragraph
“a”
,
the
lead
state
20
commissioner
shall
have
the
discretion
to
exempt
the
ultimate
21
controlling
person
of
an
insurer
subject
to
registration
from
22
the
annual
group
capital
calculation
filing
requirement,
or
to
23
allow
a
limited
group
capital
filing
or
report
in
accordance
24
with
criteria
as
established
by
the
commissioner
by
rule.
25
d.
If
the
lead
state
commissioner
determines
that
an
26
insurance
holding
company
system
no
longer
satisfies
the
27
criteria
for
exemption
under
paragraph
“a”
,
subparagraphs
(1)
28
through
(4),
the
insurance
holding
company
system
shall
file
29
the
group
capital
calculation
at
the
next
annual
filing
date,
30
unless
for
reasonable
grounds
shown
is
granted
an
extension
by
31
the
lead
state
commissioner.
32
NEW
SUBSECTION
.
12B.
Liquidity
stress
test.
33
a.
The
ultimate
controlling
person
of
every
insurer
34
subject
to
registration,
and
that
meets
the
scope
criteria,
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shall
file
the
results
of
a
liquidity
stress
test
for
each
1
data
year
that
the
insurer
is
subject
to
the
liquidity
stress
2
test
framework.
The
filing
shall
be
made
to
the
lead
state
3
insurance
commissioner
of
the
insurance
holding
company
system
4
as
determined
by
the
procedures
in
the
applicable
financial
5
analysis
handbook
published
by
the
NAIC.
6
b.
Any
change
to
the
NAIC
liquidity
stress
test
framework,
7
or
to
the
data
year
for
which
the
scope
criteria
is
to
be
8
measured,
shall
be
effective
on
January
1
of
the
calendar
year
9
immediately
following
the
calendar
year
that
the
change
to
the
10
liquidity
stress
test
framework
or
the
data
year
is
adopted
by
11
the
NAIC.
12
c.
An
insurer
that
meets
at
least
one
threshold
of
the
13
scope
criteria
shall
be
subject
to
the
liquidity
stress
14
test
framework
for
the
specified
data
year
unless
the
lead
15
state
insurance
commissioner,
in
consultation
with
the
NAIC
16
financial
stability
task
force
or
its
successor,
determines
17
that
the
insurer
shall
be
exempt
from
the
liquidity
stress
test
18
framework
for
that
data
year.
An
insurer
that
does
not
meet
19
at
least
one
threshold
of
the
scope
criteria
for
a
specified
20
data
year
may
be
subject
to
the
liquidity
stress
test
framework
21
if
the
lead
state
insurance
commissioner,
in
consultation
with
22
the
NAIC
financial
stability
task
force
or
its
successor,
23
determines
that
the
insurer
shall
be
subject
to
the
liquidity
24
stress
test
framework
for
that
data
year.
25
d.
The
performance
of,
and
filing
of
the
results
from,
a
26
specific
year’s
liquidity
stress
test
shall
comply
with
all
the
27
following:
28
(1)
The
liquidity
stress
test
framework
instructions
and
29
reporting
template
applicable
to
the
corresponding
data
year.
30
(2)
The
determinations
made
by
the
lead
state
insurance
31
commissioner,
in
conjunction
with
the
NAIC’s
financial
32
stability
task
force
or
its
successor,
that
are
provided
within
33
the
liquidity
stress
test
framework.
34
Sec.
6.
Section
521A.7,
subsection
1,
Code
2022,
is
amended
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to
read
as
follows:
1
1.
a.
All
information,
documents,
and
copies
thereof
2
obtained
by
or
disclosed
to
the
commissioner
or
any
other
3
person
in
the
course
of
an
examination
or
investigation
made
4
pursuant
to
section
521A.6
or
521A.6A
,
and
all
information
5
reported
or
provided
to
the
commissioner
pursuant
to
6
sections
521A.4
,
521A.5
,
521A.6A
,
and
521A.6B
,
shall
be
given
7
confidential
treatment
shall
be
considered
a
confidential
8
record
and
be
recognized
and
protected
as
a
trade
secret
9
pursuant
to
section
22.7
,
shall
not
be
subject
to
subpoena,
10
shall
not
be
subject
to
discovery
or
admissible
in
evidence
11
in
a
private
civil
action,
and
shall
not
be
made
public
by
12
the
commissioner
or
any
other
person,
except
to
insurance
13
departments
of
other
states,
without
the
prior
written
14
consent
of
the
insurer
to
which
it
pertains
unless
the
15
commissioner,
after
giving
the
insurer
and
its
affiliates
16
who
would
be
affected
thereby,
notice
and
opportunity
to
17
be
heard,
determines
that
the
interests
of
policyholders,
18
shareholders,
or
the
public
will
be
served
by
the
publication
19
thereof,
in
which
event
the
commissioner
may
publish
all
or
20
any
part
thereof
in
such
manner
as
the
commissioner
may
deem
21
appropriate.
However,
the
commissioner
is
authorized
to
use
22
the
information,
documents,
or
copies
obtained
by,
disclosed
23
to,
or
reported
or
provided
to
the
commissioner
as
described
in
24
this
subsection
,
in
the
furtherance
of
any
regulatory
or
legal
25
action
brought
as
a
part
of
the
commissioner’s
official
duties.
26
b.
Notwithstanding
paragraph
“a”
,
the
commissioner
shall
27
maintain
the
confidentiality
and
shall
not
publish
any
of
the
28
following
submitted
to
the
commissioner
pursuant
to
section
29
521A.4,
subsection
12A:
30
(1)
Group
capital
calculations.
31
(2)
Group
capital
ratios
produced
within
the
group
capital
32
calculation.
33
(3)
Any
group
capital
information
received
from
an
34
insurance
holding
company
supervised
by
the
federal
reserve
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board
or
any
United
States’
group-wide
supervisor.
1
c.
Notwithstanding
paragraph
“a”
,
the
commissioner
shall
2
maintain
the
confidentiality
and
shall
not
publish
any
of
the
3
following
submitted
to
the
commissioner
pursuant
to
section
4
521A.4,
subsection
12B:
5
(1)
Liquidity
stress
test
results
and
supporting
6
documentation.
7
(2)
Any
liquidity
stress
test
information
received
from
an
8
insurance
holding
company
supervised
by
the
federal
reserve
9
board
or
any
non-United
States’
group-wide
supervisor.
10
Sec.
7.
Section
521A.7,
subsection
3,
Code
2022,
is
amended
11
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
12
following:
13
3.
In
order
to
assist
in
the
performance
of
the
14
commissioner’s
duties,
the
commissioner:
15
a.
May
share
documents,
materials,
or
other
information,
16
including
confidential,
privileged,
and
trade
secret
documents,
17
materials,
or
information
subject
to
subsection
1,
with
18
other
state,
federal,
and
international
regulatory
agencies,
19
the
NAIC,
any
third-party
consultants
designated
by
the
20
commissioner,
state,
federal,
and
international
law
enforcement
21
authorities,
including
members
of
any
supervisory
college
22
described
in
section
521A.6A,
if
the
recipient
provides
a
23
written
attestation
that
states
all
of
the
following:
24
(1)
That
the
recipient
shall
maintain
the
confidentiality,
25
privileged,
or
trade
secret
status
of
the
document,
material,
26
or
other
information.
27
(2)
That
the
recipient
has
the
legal
authority
to
maintain
28
the
confidentiality,
privileged,
or
trade
secret
status
of
the
29
document,
material,
or
other
information.
30
b.
Notwithstanding
paragraph
“a”
,
the
commissioner
may
31
only
share
confidential
and
privileged
documents,
materials,
32
or
information
filed
or
submitted
pursuant
to
section
33
521A.4,
subsection
12,
with
the
commissioner
of
a
state
that
34
has
statutes
or
regulations
substantially
similar
if
the
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commissioner
provides
a
written
attestation
that
the
documents,
1
material,
or
information
shall
not
be
disclosed.
2
c.
May
receive
documents,
materials,
or
information,
3
including
otherwise
confidential,
privileged,
proprietary,
4
or
trade
secret
documents,
materials,
or
information
from
5
the
NAIC
and
its
affiliates
and
subsidiaries,
regulatory
6
and
law
enforcement
officials
of
other
foreign
or
domestic
7
jurisdictions,
and
shall
maintain
as
confidential,
privileged,
8
proprietary,
or
trade
secret
any
document,
material,
or
9
information
received
with
either
notice
or
the
understanding
10
that
it
is
confidential,
privileged,
proprietary,
or
trade
11
secret
under
the
laws
of
the
jurisdiction
that
is
the
source
of
12
the
document,
material,
or
information.
13
d.
Shall
enter
into
a
written
agreement
with
the
NAIC,
and
14
any
third-party
consultant
designated
by
the
commissioner,
that
15
governs
sharing
and
the
use
of
information
provided
pursuant
to
16
this
chapter,
that
is
consistent
with
this
subsection,
and
that
17
does
all
the
following:
18
(1)
Specifies
procedures
and
protocols
regarding
the
19
confidentiality
and
security
of
information
shared
pursuant
20
to
this
chapter
with
the
NAIC
or
a
third-party
consultant
21
designated
by
the
commissioner,
including
procedures
and
22
protocols
for
the
NAIC
sharing
the
information
with
other
23
state,
federal,
or
international
regulators.
The
agreement
24
must
provide
that
the
recipient
of
the
information
shared
25
by
the
NAIC
or
a
third-party
consultant
designated
by
the
26
commissioner
shall
provide
a
written
attestation
that
states
27
all
of
the
following:
28
(a)
That
the
recipient
shall
maintain
the
confidentiality,
29
privileged,
or
trade
secret
status
of
the
information.
30
(b)
That
the
recipient
has
the
legal
authority
to
maintain
31
the
confidentiality,
privileged,
or
trade
secret
status
of
the
32
information.
33
(2)
Specifies
that
ownership
of
all
information
shared
34
pursuant
to
this
chapter
with
the
NAIC
or
a
third-party
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consultant
designated
by
the
commissioner
remains
with
the
1
commissioner,
and
the
NAIC’s
or
third-party
consultant’s
2
use
of
the
information
is
subject
to
the
direction
of
the
3
commissioner.
4
(3)
Prohibits
the
NAIC
or
a
third-party
consultant
5
designated
by
the
commissioner
from
storing
the
information
6
shared
pursuant
to
this
chapter
in
a
permanent
database
after
7
the
underlying
analysis
is
completed.
This
prohibition
shall
8
not
apply
to
filings
and
supporting
documentation
made
pursuant
9
to
section
521A.4,
subsection
12A.
10
(4)
Requires
prompt
notice
be
given
by
the
NAIC
or
a
11
third-party
consultant
designated
by
the
commissioner
to
an
12
insurer
whose
confidential
information
is
the
possession
of
the
13
NAIC
or
the
consultant
pursuant
to
this
chapter
and
that
is
14
subject
to
a
request
or
subpoena
to
the
NAIC
or
the
consultant
15
for
disclosure
or
production.
16
(5)
Requires
the
NAIC
or
a
third-party
consultant
17
designated
by
the
commissioner
to
consent
to
intervention
by
an
18
insurer
in
any
judicial
or
administrative
action
in
which
the
19
NAIC
or
the
consultant
may
be
required
to
disclose
confidential
20
information
about
the
insurer
that
had
been
shared
with
the
21
NAIC
or
consultant
pursuant
to
this
chapter.
22
(6)
Requires
notification
to
an
insurer
of
the
identity
of
23
a
third-party
consultant
designated
by
the
commissioner
that
is
24
in
possession
of
the
results
of
the
insurer’s
liquidity
stress
25
test
or
any
supporting
documentation
filed
pursuant
to
section
26
521A.4,
subsection
12B.
27
Sec.
8.
Section
521A.7,
subsection
6,
Code
2022,
is
amended
28
to
read
as
follows:
29
6.
Documents,
materials,
or
other
information
in
the
30
possession
or
control
of
the
national
association
of
insurance
31
commissioners
NAIC
or
a
third-party
consultant
designated
by
32
the
commissioner
pursuant
to
this
chapter
shall
be
confidential
33
by
law
and
privileged,
shall
not
be
subject
to
chapter
22
,
34
shall
not
be
subject
to
subpoena,
and
shall
not
be
subject
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to
discovery
or
admissible
in
evidence
in
any
private
civil
1
action.
2
Sec.
9.
NEW
SECTION
.
521A.7A
Announcements
to
the
public
3
——
prohibition.
4
1.
a.
The
group
capital
calculation
and
all
supporting
5
documentation
filed
pursuant
to
section
521A.4,
subsection
6
12A,
and
the
liquidity
stress
test
results
and
all
supporting
7
documentation
filed
pursuant
to
section
521A.4,
subsection
8
12B,
shall
be
designated
as
regulatory
tools
utilized
for
the
9
purpose
of
assessing
group
risks,
and
capital
adequacy
and
10
group
liquidity
risks,
respectively,
and
shall
not
be
construed
11
as
a
means
to
rank
insurers
or
insurance
holding
company
12
systems.
13
b.
Except
as
otherwise
required
under
this
chapter,
an
14
insurer,
broker,
or
other
person
engaged
in
the
business
of
15
insurance
shall
be
prohibited
from
making
an
announcement
to
16
the
public.
For
purposes
of
this
subsection,
“announcement
to
17
the
public”
means
the
use,
directly
or
indirectly,
of
any
print
18
media,
broadcast
media,
electronic
media,
subscription
internet
19
site,
internet
site
available
to
the
public,
or
any
other
means
20
to
make
a
representation
or
statement
related
to
any
of
the
21
following:
22
(1)
(a)
An
insurer’s
or
an
insurer
group’s
filings
made
23
under
section
521A.4,
subsection
12A,
including
a
group
capital
24
calculation
and
any
supporting
documentation.
25
(b)
Any
component
derived
from
an
insurer’s
or
an
insurer
26
group’s
group
capital
calculation
or
supporting
documentation
27
filed
under
subparagraph
division
(a).
28
(c)
Any
comparison
of
an
insurer’s
or
an
insurer
group’s
29
group
capital
calculation,
group
capital
ratio,
or
other
metric
30
calculated
or
derived
from
the
insurer’s
or
insurer
group’s
31
filings
under
subparagraph
division
(a).
32
(2)
(a)
An
insurer’s
or
an
insurer
group’s
filings
made
33
under
section
521A.4,
subsection
12B,
including
the
result
of
34
the
liquidity
stress
test
and
any
supporting
documentation.
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(b)
Any
component
derived
from
the
results
of
an
insurer’s
1
or
an
insurer
group’s
group
liquidity
stress
test
or
supporting
2
documentation
filed
under
subparagraph
division
(a).
3
(c)
Any
comparison
of
an
insurer’s
or
an
insurer
4
group’s
liquidity
stress
test
or
other
metric
calculated
or
5
derived
from
the
insurer’s
or
insurer
group’s
filings
under
6
subparagraph
division
(a).
7
2.
If
an
insurer
or
an
insurer
group
is
able
to
demonstrate
8
to
the
commissioner
with
substantial
proof
the
material
falsity
9
or
inappropriateness
of
an
announcement
made
to
the
public
10
under
subsection
1,
paragraph
“b”
,
by
an
insurer,
broker,
or
11
other
person
engaged
in
the
business
of
insurance,
the
insurer
12
or
insurer
group
may
publish
an
announcement
in
a
written
13
publication
if
the
sole
purpose
of
the
announcement
is
to
rebut
14
the
materially
false
or
inappropriate
announcement
made
to
the
15
public
by
the
insurer,
broker,
or
other
person
engaged
in
the
16
business
of
insurance.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
relates
to
financial
reporting
by
insurance
21
holding
company
systems
(holding
companies).
22
The
bill
requires
the
ultimate
controlling
person
(person)
23
of
every
insurer
subject
to
registration
to
concurrently
file
24
with
the
registration
an
annual
group
capital
calculation,
25
completed
in
accordance
with
the
group
capital
calculation
26
instructions,
and
filed
with
the
lead
state
commissioner
(lead
27
commissioner)
of
the
holding
company
as
determined
by
the
28
procedures
in
the
most
recent
financial
analysis
handbook
29
(handbook)
published
by
the
national
association
of
insurance
30
commissioners
(NAIC).
“Group
capital
calculation
instructions”
31
are
defined
in
the
bill
as
the
most
recent
instructions
32
adopted
by
the
NAIC
group
capital
calculation
working
group
33
or
its
successor,
and
as
published
or
amended
by
the
NAIC
34
in
accordance
with
procedures
adopted
by
the
NAIC.
Certain
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holding
companies,
as
detailed
in
the
bill,
are
exempt
from
1
filing
the
calculation.
2
The
bill
also
requires
the
person
of
every
insurer
subject
3
to
registration,
and
that
meets
the
scope
criteria,
to
file
4
the
results
of
a
liquidity
stress
test
(stress
test)
for
each
5
data
year
that
the
insurer
is
subject
to
the
liquidity
stress
6
test
framework
(framework).
The
filing
shall
be
made
to
the
7
lead
commissioner
of
the
holding
company
as
determined
by
the
8
procedures
in
the
most
recent
handbook
published
by
the
NAIC.
9
An
insurer
that
meets
at
least
one
threshold
of
the
scope
10
criteria
shall
be
subject
to
the
framework
for
the
specified
11
data
year
unless
the
lead
commissioner,
in
consultation
12
with
the
NAIC
financial
stability
task
force
(task
force),
13
determines
that
the
insurer
is
exempt.
An
insurer
that
does
14
not
meet
at
least
one
threshold
of
the
scope
criteria
for
a
15
specified
data
year
may
be
subject
to
the
framework
if
the
16
lead
commissioner,
in
consultation
with
the
NAIC
task
force,
17
determines
that
the
insurer
shall
be
subject
to
the
framework
18
for
that
data
year.
“Scope
criteria”
and
“liquidity
stress
19
test
framework”
are
defined
in
the
bill.
20
The
performance
of,
and
the
filing
of,
the
results
from
a
21
specific
year’s
stress
test
must
comply
with
the
requirements
22
detailed
in
the
bill.
Any
change
to
the
framework,
or
to
the
23
data
year
for
which
the
scope
criteria
is
to
be
measured,
shall
24
be
effective
on
January
1
of
the
calendar
year
immediately
25
following
the
calendar
year
that
the
change
to
the
framework
or
26
to
the
data
year
is
adopted
by
the
NAIC.
27
All
information
reported
or
provided
to
the
commissioner
28
shall
be
considered
a
confidential
record
and
be
recognized
and
29
protected
as
a
trade
secret,
and
is
subject
to
disclosure
or
30
prohibited
from
disclosure
as
detailed
in
the
bill.
31
The
group
capital
calculation
and
all
supporting
32
documentation,
and
the
stress
test
results
and
all
supporting
33
documentation,
shall
be
designated
as
regulatory
tools
utilized
34
for
the
purpose
of
assessing
group
risks,
and
capital
adequacy
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and
group
liquidity
risks,
respectively,
and
shall
not
be
1
construed
as
a
means
to
rank
insurers
or
holding
companies.
2
Except
as
otherwise
required
under
the
bill,
an
insurer,
a
3
broker,
or
other
person
engaged
in
the
business
of
insurance
4
shall
be
prohibited
from
making
an
announcement
to
the
public.
5
“Announcement
to
the
public”
is
defined
in
the
bill
as
the
6
use,
directly
or
indirectly,
of
any
print
media,
broadcast
7
media,
electronic
media,
subscription
internet
site,
internet
8
site
available
to
the
public,
or
any
other
means
to
make
a
9
representation
or
statement
related
to
an
insurer’s
or
an
10
insurer
group’s
filings
as
detailed
in
the
bill.
11
The
bill
provides
that
if
an
insurer
or
an
insurer
group
is
12
able
to
demonstrate
to
the
commissioner
with
substantial
proof
13
the
material
falsity
or
inappropriateness
of
an
announcement
14
made
to
the
public
by
an
insurer,
broker,
or
other
person
15
engaged
in
the
business
of
insurance,
the
insurer
or
insurer
16
group
may
publish
an
announcement
in
a
written
publication
if
17
the
sole
purpose
of
the
announcement
is
to
rebut
the
materially
18
false
or
inappropriate
announcement
made
to
the
public
by
the
19
insurer,
broker,
or
other
person
engaged
in
the
business
of
20
insurance.
21
The
bill
makes
conforming
changes
to
Code
sections
22
511.8(22)(b)(2)
and
521A.3(2)(a)(12).
23
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