New Hampshire House Bill HB1558

New Hampshire 2022 Regular Session

• Introduced: 12/14/21
• Refer: 12/14/21
• Report Pass: 3/8/22
• Engrossed: 3/22/22
• Refer: 3/22/22
• Report Pass: 3/29/22
• Enrolled: 4/25/22
• Chaptered: 5/6/22
• Passed: 5/6/22

Caption

Relative to insurance holding companies.

Impact

By modifying the rules governing insurance holding companies, HB 1558 seeks to provide a clearer statutory framework for assessing the capital and liquidity needs of these entities. Importantly, it establishes criteria for identifying insurers that will fall under enhanced scrutiny based on their size and operational scope, particularly those operating across international borders. This should ultimately contribute to better risk management practices and improve the monitoring of systemic risks within the insurance industry at the state level.

Summary

House Bill 1558 focuses on the regulation of insurance holding companies in New Hampshire. It introduces amendments to existing statutes regarding group capital calculations and regulatory frameworks for insurers. Among the critical definitions included in this bill are those related to 'internationally active insurance groups' and the requirements for collecting and reporting liquidity stress test results. This legislation aims to align state regulations with national standards set forth by the National Association of Insurance Commissioners (NAIC), thereby enhancing the regulatory oversight of insurers and improving financial stability within the sector.

Contention

However, the bill has generated discussions regarding the balance of regulatory oversight against the operational flexibility of insurance providers. Some industry stakeholders have voiced concerns that overly stringent regulations could lead to increased operational costs and complexities. Others support the notion that robust regulations are necessary to ensure that insurers can withstand financial pressures, thereby protecting consumers and maintaining market integrity. The outcomes of implementing this bill will depend significantly on the engagement of industry participants in how these new regulations are applied and enforced.