Included definitions re group capital calculations, liquidity stress tests, and exposures.
Added criteria by which a domestic insurer by itself or in cooperation with one or more persons, may organize or acquire subsidiaries who may conduct business in the State.
May also invest in certain stocks, as long as subsidiaries follow investment limitations.
With the approval of Insurance Commissioner, may invest any greater amount in common stock, preferred stock, debt obligations, securities if reasonable or adequate.
Accepted certain conditions if they apply in respect to merger that limits competition.
A hearing may also be held for a proposed acquisition of control if approval of more than one INS Commissioner is needed, and statement of filing must be filed with NAIC.
The State insurance commissioners will hear testimony, examine witnesses, receive evidence and may attend the consolidated hearing in person or by telecommunication.
Added the criteria to calculate group capital calculations as well as filing exemptions.
Ultimate controlling person subject to registration and in scope re NAIC liquidity stress test framework will file results for specific year, which scope will be reviewed annually.
Reported on insurer record retention policies and the segregation of certain records.
Legislative History
On Feb. 17, 2025, bill introduced in Senate; on Feb. 24, 2025, bill passed in Senate.
On Feb. 24, 2025, bill delivered to House; on Mar. 10, 2025, bill was passed in House.
On Mar. 12, 2025, bill was approved by the governor and Bill SB 236 became Act 261.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
