HB641 Alabama 2021 Session

Sponsors

Session

Regular Session 2021

Title

Insurance holding companies, regulation by Commissioner of Insurance, group capital calculation and stress test, providing for holding companies, duties to Commission and lead state commissioner, confidentiality under Regulatory Act, Secs. 27-29-1, 27-29-3, 27-29-4, 27-29-7 am'd.

Description

<p class="bill_description"> Under existing law, the Commissioner of Insurance regulates insurance holding company systems pursuant to the Insurance Company Holding Company System Regulatory Act. The members of an insurance holding company system are required to meet certain capital and liquidity requirements to protect the solvency of the insurers within the holding company. Based on reporting to the commissioner, the commissioner performs group analysis of an insurance holding company, but without the benefit of a consolidated statutory accounting system and financial statements</p><p class="bill_description"> This bill would provide for a group capital calculation and related reporting requirements to the Commissioner of Insurance regarding an insurance holding company. The group capital calculation would include a group capital ratio</p><p class="bill_description"> This bill would further provide for a liquidity stress test of an insurance holding company. The ultimate controlling person of every insurer subject to holding company registration, if determined to meet certain conditions, would be required to file the results of a specific year's liquidity stress test to the lead state insurance commissioner to assist in the group regulation of the insurance holding company</p><p class="bill_description"> This bill would further provide for the confidentiality of information in the possession of the Commissioner of Insurance and third party consultants designated by the commissioner relating to insurance holding company regulation and would include the group capital calculation and resulting group capital ratio and the liquidity stress test and its results and supporting documentation as filed with the commissioner within the confidentiality provisions</p><p class="bill_entitled_an_act"> Relating to insurance; to revise the Alabama Insurance Holding Company System Regulatory Act and the regulation of insurance holding company systems by the Commissioner of Insurance; to provide for a group capital calculation and a liquidity stress test within the insurance holding company system; to further provide for the confidentiality of information in the possession of the Commissioner of Insurance and third party consultants designated by the commissioner relating to insurance holding company regulation and would include the group capital calculation and resulting group capital ratio and for the liquidity stress test and its results and supporting documentation as filed with the commissioner within the confidentiality provisions; and for these purposes to amend Sections 27-29-1, 27-29-3, 27-29-4, and 27-29-7, Code of Alabama 1975, as amended by Act 2019-97 of the 2019 Regular Session. </p>

Subjects

Insurance