DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 715 Original 2022 Regular Session Green
Abstract: Provides for the Insurance Holding Company System Regulatory Law.
Proposed law defines "group capital calculation instructions", "NAIC liquidity stress test
framework", and "scope criteria".
Present law provides that certain information does not need to be disclosed on the registration
statement filed pursuant to present law if the information is not material to the purposes of present
law.
Proposed law provides that present law does not apply for the purposes of the group capital
calculation or the liquidity stress test framework.
Proposed law provides that the ultimate controlling person of every insurer subject to registration
shall file an annual group capital calculation.
Proposed law provides that certain insurance holding companies are exempt from filing the group
capital calculation.
Proposed law provides that the ultimate controlling person of every insurer subject to registration
and scoped into the NAIC liquidity stress test shall file the results of the test.
Proposed law provides that insurers meeting at least one threshold of the scope criteria are
considered scoped into the NAIC liquidity stress test framework for the specified data year, unless
the lead state insurance commissioner, in consultation with the NAIC Financial Stability Task Force
or its successor, determines the insurer should not be scoped into the Framework for that data year.
Present law provides for violations of present law and incorporation by reference. Proposed law
retains and redesignates present law.
Proposed law provides certain standards that must be met for transactions with an insurance holding
company system to which an insurer subject to registration is a party to the transaction.
Proposed law provides that any affiliate that is party to an agreement or contract with a domestic
insurer shall be subject to the jurisdiction of any supervision, seizure, conservatorship, or
receivership proceedings against the insurer. Proposed law provides that certain documents, materials, and other information in the possession
of the La. Department of Insurance shall be recognized as proprietary information, containing trade
secrets.
Proposed law provides that the commissioner of insurance shall maintain the confidentiality of the
group capital calculation and the liquidity stress test results and its supporting documents received
from insurers.
Proposed law provides that the commissioner may share certain proprietary information and trade
secret documents with other state, federal, and international law enforcement authorities.
Proposed law provides that the commissioner may receive proprietary and trade secret information
form certain sources.
Proposed law provides that the commissioner may enter into written agreements with the NAIC, and
any third-party consultants designated by the commissioner, governing the sharing and use of certain
information.
Proposed law prohibits the disclosure of insurers' group capital calculation, group capital ratio, and
liquidity stress test results, except as to rectify a misrepresentation of such data, if the sole purpose
of the disclosure is to rebut a materially false statement regarding the data.
(Amends R.S. 22:691.2(intro. para.), 691.6(D), (M), and (N), and 691.10(A), (C)(1), (3), (4), and (F);
Adds R.S. 22:691.2(13)-(15), 691.6(O) and (P), 691.7(A)(1)(g)-(i) and (6), and 691.10(G))