On Mar. 28, MD LEG bill on group capital calculation and stress tests.
MD LEG passed HB 252 on IHC group capital calculation, liquidity stress test results.
Aims to reflect revisions to NAIC Model Act #440, IHC system regulatory act and NAIC Model Act #450, ICH system model regulation with reporting forms and instructions.
Provisions require insurers to participate in a Group Capital Calculation (GCC) and Liquidity Stress Test (LST) and establish related processes and requirements.
Require commissioner to protect confidentiality of group capital calculation, stress test.
Lists information reported or provided to commissioner that is expressly confidential, e.g., trade secrets, info not subject to subpoena or discovery in a private civil action.
In case of a legal action, protects commissioner or others from having to testify.
Commissioner may use confidential information in regulatory/legal action as needed.
May share said information with other regulators, NAIC, third-party consultants, international law enforcement and international regulatory agencies as required.
The sharing of information does not constitute a delegation of regulatory authority.
Allows commissioner, NAIC, consultants to disclose confidential IHC group capital info or liquidity stress test info/results or info about the insurer if required by court of law.
Legislative History
On Jan. 10, 2024, bill introduced in House; on Mar. 13, 2024, bill passed in the House.
On Mar. 15, 2024, bill introduced in Senate; on Mar. 27, 2024, bill passed the Senate.
On Mar. 28, 2024, bill sent after passage from Senate to MD House of Representatives.
Effectiveness
If approved, provisions of House bill HB 252 are effective on Tues., Oct. 1, 2024.
Apr. 2024 MD LEG Governor Approval
On Apr. 9, 2024, MD LEG reported bill was approved by governor, now Chapter 121.
On Jul. 9, 2024, MD INS issued Bulletin 2024-17 on act requirements, see #218831.
Regulators
MD LEG; NAIC
Entity Types
IHC; Ins
Reference
Ch. 121, 4/9/2024; Bill HB0252, 3/28/2024; ESG; Citation: *MD INS* 7-106, 7-603; *NAIC Model Act* #440, #450;
Functions
Actuarial and Valuation; Fraud; Legal; Operations; Reporting; Risk
