Oklahoma 2025 Regular Session

Oklahoma House Bill HB1497 Compare Versions

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Version 2 (New)

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	3	+	HB1497 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1497 By: Tedford of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 60th Legislature (2025)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 1497 By: Tedford of the House
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31	39		and
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33	41		Reinhardt of the Senate
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	47	+	COMMITTEE SUBSTITUTE
39	48
40	49		An Act relating to insurance; amending 36 O.S. 2021,
41	50		Section 1631, which relates to definitions; providing
42	51		definitions; amending 36 O.S. 2021, Section 1635,
43	52		which relates to registration of insurers; clarifying
44	53		applicability of statute; requiring certain report;
45	54		specifying report details; requiring Liquidity Stress
46	55		Test; amending 36 O.S. 2021, Section 1640, which
47	56		relates to confidentiality of documents and other
48	57		information; updating citations; clarifying certain
49	58		documents, materials, or other information is
50	59		proprietary and contains trade secrets; directing
51	60		commissioner to maintain the confidentiality of
52	61		certain information; and providing an effective date.
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58	67		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
59	68		SECTION 1. AMENDATORY 36 O.S. 2021, Section 1631, is
60	69		amended to read as follows:
61	70		Section 1631. As used in this act, the following terms shall
62	71		have these meanings unless the context shall otherwise require:
63		-	1. "Affiliate of" or person "affiliated with" a specific person
64		-	means a person that directly, or indirectly through one or more
65		-	intermediaries, controls, or is controlled by, or is under common
66		-	control with, the person specified;
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68		-	ENGR. H. B. NO. 1497 Page 2 1
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	99	+	1. "Affiliate of" or p erson "affiliated with" a specific person
	100	+	means a person that directly, or indirectly through one or more
	101	+	intermediaries, controls, or is controlled by, or is under common
	102	+	control with, the person specified;
93	103		2. "Commissioner" means the Insurance Commissioner of the State
94	104		of Oklahoma, the Commissione r's deputies, or the Insurance
95	105		Department, as appropriate;
96	106		3. "Control" includes the terms "controlling", "controlled by"
97	107		and "under common control with" and means the possession, direct or
98	108		indirect, of the pow er to direct or cause the direction of the
99	109		management and policies of a person, whether through the ownership
100	110		of voting securities, by contract other than a commercial contract
101	111		for goods or nonmanagement services, or otherwise, unless the power
102	112		is the result of an official position or corporate offic e held by
103	113		the person. Control shall be presumed to exist if any person,
104	114		directly or indirectly, owns, controls, holds with the power to
105	115		vote, or holds proxies representing, ten percent (10%) or more of
106	116		the voting securities of any other person. This pres umption may be
107	117		rebutted by a showing made in the manner provided by subsection K of
108	118		Section 5 1635 of this act title that control does not exist in
109	119		fact. The Commissioner may determine, after furnishing all persons
110	120		in interest notice and opportunity to be heard and making specific
111	121		findings of fact to support the determination that control exists in
112	122		fact, notwithstanding the absence of a presumption to that effect;
113		-	4. "Group-wide supervisor" means the regulatory official
114		-	authorized to engage in conducting and coordinating group -wide
115		-	supervision activities who is determined or acknowledged by the
116		-	Commissioner under Section 9 1639 of this act title to have
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	150	+	4. "Group-wide supervisor" means the regulatory official
	151	+	authorized to engage in conducting and coordinating group -wide
	152	+	supervision activities who is determined or acknowledged by the
	153	+	Commissioner under Section 9 1639 of this act title to have
143	154		sufficient significant contacts with the internationally active
144	155		insurance group;
145	156		5. "Group Capital Calculation Instructions" means the group
146	157		capital calculation instructions as adopted by the NAIC and as
147	158		amended by the NAIC from time to time in accordance with the
148	159		procedures adopted by the NAIC;
149	160		6. "Insurance holding company system" means an insurance
150	161		holding company system consisting of two or more affiliated persons,
151	162		one or more of which is an insurer;
152	163		6. 7. "Insurer" has the same meaning as set forth in Section
153	164		103 of Title 36 of the Oklahoma Statutes, except that it shall not
154	165		include agencies, authorit ies or instrumentalities of the United
155	166		States, its possessions and territories, the Commonwealth of Puerto
156	167		Rico, the District of Columbia, or a state or political subdivision
157	168		of a state;
158	169		7. 8. "Internationally active insurance group" means an
159	170		insurance holding company system that:
160	171		a. includes an insurer registered under Section 5 1635 of
161	172		this act title, and
162	173		b. meets the following criteria:
163		-	(1) premiums written in at least three countries,
164		-	(2) the percentage of gross premiums written outside
165		-	the United States is at least ten percent (10%)
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	201	+	(1) premiums written in at least three countries,
	202	+	(2) the percentage of gross premiums written outside
	203	+	the United States is at least ten percent (10%)
192	204		of the insurance holding company system's total
193	205		gross written premiums, and
194	206		(3) based on a three-year rolling average, the total
195	207		assets of the insurance holding company system
196	208		are at least Fifty Billion Dollars
197	209		($50,000,000,000.00) or the total gross written
198	210		premiums of the insurance holding company system
199	211		are at least Ten Billion Dollars
200	212		($10,000,000,000.00);
201	213		8. 9. "Enterprise risk" means any activity, circumstance, event
202	214		or series of events involving one or more affiliate s of an insurer
203	215		that, if not remedied promptly, is likely to have a material adverse
204	216		effect upon the financial condition or liquidity of the insurer or
205	217		its insurance holding company system as a whole, including, but not
206	218		limited to, anything that would caus e the insurer's risk -based
207	219		capital to fall into company action level as set forth in the Risk -
208	220		based Capital for Insurers Act provided in Sections 1521 through
209	221		1533 of Title 36 of the Oklahoma Statues, or would cause the insurer
210	222		to be in hazardous financial condition pursuant to rules promulgated
211	223		by the Insurance Department;
212		-	9. 10. "NAIC" means the National Association of Insurance
213		-	Commissioners;
214		-	11. "NAIC Liquidity Stress Test Framework" means a separate
215		-	NAIC publication which includes a history of the NAIC's development
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	251	+	9. 10. "NAIC" means the National Association of Insurance
	252	+	Commissioners;
	253	+	11. "NAIC Liquidity Stress Test Framework" means a separate
	254	+	NAIC publication which includes a history of the NA IC's development
242	255		of regulatory Liquidity Stress Testing, the Scope Criteria
243	256		applicable for a specific data year, and the Liquidity Stress Test
244	257		instructions and reporting templates for a specific data year, such
245	258		Scope Criteria, instructions and reporting te mplate being as adopted
246	259		by the NAIC and as amended by the NAIC from time to time in
247	260		accordance with the procedures adopted by the NAIC;
248	261		12. "Person" means an individual, a corporation, a limited
249	262		liability company, a partnership, an association, a joint st ock
250	263		company, a trust, an unincorporated organization, any similar entity
251	264		or any combination of the foregoing acting in concert, but shall not
252	265		include any joint venture partnership exclusively engaged in owning,
253	266		managing, leasing or developing real or tangi ble personal property;
254	267		10. 13. "Scope Criteria" means, as detailed in the NAIC
255	268		Liquidity Stress Framework, the designated exposure bases along with
256	269		minimum magnitudes thereof for the specified data year, used t o
257	270		establish a preliminary list of insurers co nsidered scoped into the
258	271		NAIC Liquidity Stress Test Framework for that data year;
259	272		14. "Securityholder" of a specified person means one who owns
260	273		any security of such person, including common stock, preferred
261		-	stock, debt obligations and any other security convertible into or
262		-	evidencing the right to acquire any of the foregoing;
263		-	11. 15. "Subsidiary" of a specified person means an affiliate
264		-	controlled by such pe rson directly or indirectly through one or more
265		-	intermediaries; and
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	301	+	stock, debt obligations and any other security c onvertible into or
	302	+	evidencing the right to acquire any of the foregoing;
	303	+	11. 15. "Subsidiary" of a specified person means an affiliate
	304	+	controlled by such person directly or indirectly through one or more
	305	+	intermediaries; and
292	306		12. 16. "Voting security" mean s any security convertible into
293	307		or evidencing a right to acquire a voting security.
294	308		SECTION 2. AMENDATORY 36 O.S. 2021, Section 1635, is
295	309		amended to read as follows:
296	310		Section 1635. A. Every insurer which is authorized to do
297	311		business in this state and which is a member of an insurance holding
298	312		company system shall register with the Insurance Commissioner,
299	313		except a foreign insurer subject to registration requirements and
300	314		standards adopted by statute or regulation in the jurisdiction o f
301	315		its domicile which are substantially similar to those contained in:
302	316		1. This section;
303	317		2. Paragraph 1 of subsection A of Section 6 1636 of this act
304		-	title and subsections B and D of Section 6 1636 of this act title;
305		-	and
306		-	3. Either paragraph 2 of subsection A of Section 6 1636 of this
307		-	act title or a provision such as the following: Each registered
308		-	insurer shall keep current the information required to be discl osed
309		-	in its registration statement by reporting all material changes or
	318	+	title and subsections B and D of Section 6 of this act; and
	319	+	3. Either paragraph 2 of subsection A of Sect ion 6 of this act
	320	+	or a provision such as the following: Each registered insurer shall
	321	+	keep current the information required to be disclosed in its
	322	+	registration statement by reporting all material changes or
310	323		additions within fifteen (15) days after the end of the month in
311	324		which it learns of each change or addition; provided, however, that
312		-	subject to subsection B of Section 6 1636 of this act title, each
313		-	registered insurer shall so report all dividends and other
314		-	distributions to shareholders within two (2) business days following
315		-	the declaration thereof.
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	352	+	subject to subsection B of Section 6 1636 of this act title, each
	353	+	registered insurer shall so report all dividends and other
	354	+	distributions to shareholders within two (2) bu siness days following
	355	+	the declaration thereof.
342	356		Any insurer which is subject to registration under this section
343	357		shall register within fifteen (15) days after it becomes subject to
344	358		registration, and annually there after by May 1 of each year for the
345	359		previous calendar year, unless the Commissioner for good cause shown
346	360		extends the time for registration, and then within the extended
347	361		time. The Commissioner may require any insurer authorized to do
348	362		business in the state which is a member of an insurance holding
349	363		company system, and which is not subject to registration under this
350	364		section, to furnish a copy of the registration statement, the
351	365		summary specified in subsection C of this section or other
352	366		information filed by the insurance company with the insurance
353	367		regulatory authority of its domiciliary jurisdiction.
354	368		B. Every insurer subject to registration shall file the
355	369		registration statement with the Commissioner on a form and in a
356	370		format prescribed by the National Association of Insurance
357	371		Commissioners (NAIC), which shall contain the following current
358	372		information:
359	373		1. The capital structure, general financial condition,
360	374		ownership and management of the insurer and any person controlling
361	375		the insurer;
362		-	2. The identity and relationship of every member of the
363		-	insurance holding company system;
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	403	+	2. The identity and relatio nship of every member of the
	404	+	insurance holding company system;
390	405		3. The following agreements in force, and transactions
391	406		currently outstanding or which have occurred during the last
392	407		calendar year between the insurer and its affiliates:
393	408		a. loans, other investments, or purchases, sales or
394	409		exchanges of securities of the affiliates by the
395	410		insurer or of the insurer by its affiliates,
396	411		b. purchases, sales or exchange of assets,
397	412		c. transactions not in the ordinary course of business,
398	413		d. guarantees or undertakings for the benefit of an
399	414		affiliate which result in an actual contingent
400	415		exposure of the insurer's assets to liability, other
401	416		than insurance contracts entered into in the ordinary
402	417		course of the insurer's business,
403	418		e. all management agreements, service contracts and all
404	419		cost-sharing arrangements,
405	420		f. reinsurance agreements,
406	421		g. dividends and other distributions to shareholders, and
407	422		h. consolidated tax allocation agreements;
408	423		4. Any pledge of the insurer's stock, including stock of any
409	424		subsidiary or controlling affili ate, for a loan made to any member
410	425		of the insurance holding company system;
411		-	5. If requested by the Commissioner, the insurer shall include
412		-	financial statements of or within an insurance holding company
413		-	system, including all affiliates. Financial statements may include
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	453	+	5. If requested by the Commissioner, the insurer shall include
	454	+	financial statements of or within an insurance holding company
	455	+	system, including all affiliates. Financial statements may include
440	456		but are not limited to annual audited financial statements filed
441	457		with the U.S. Securities and Exchange Commission (SEC) pursuant to
442	458		the Securities Act of 1933, as amended, or the Securities Exchange
443	459		Act of 1934, as amended. An insurer requi red to file financial
444	460		statements pursuant to this paragraph may satisfy the request by
445	461		providing the Commissioner with the most recently filed parent
446	462		corporation financial statements that have been filed with the SEC;
447	463		6. Other matters concerning transactions between registered
448	464		insurers and any affil iates as may be included from time to time in
449	465		any registration forms adopted or approved by the Commissioner;
450	466		7. Statements that the insurer's board of directors oversees
451	467		corporate governance and internal contr ols and that the insurer's
452	468		officers or senior management have approved, implemented and
453	469		continue to maintain and monitor corporate governance and internal
454	470		control procedures; and
455	471		8. Any other information required by the Commissioner by rule
456	472		or regulation.
457	473		C. All registration statements shall contai n a summary
458	474		outlining all items in the current registration statement
459	475		representing changes from the prior registration statement.
460		-	D. No information need be disclosed on the registration
461		-	statement filed pursuant to subsection B of this section if the
462		-	information is not material for the purposes of this section.
463		-	Unless the Commissioner by rule, regulation or order provides
464	476
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	503	+	D. No information need be disclosed on the registration
	504	+	statement filed pursuant to subsection B of this section if the
	505	+	information is not material for the purposes of this section.
	506	+	Unless the Commissioner by rule, regulation or order provides
490	507		otherwise, sales, purchases, exchanges, loans or extensions of
491	508		credit, investments, or guarantees involving one -half of one percent
492	509		(.5%) or less of an insurer's admitted assets as of December 31 next
493	510		preceding shall not be deemed material for purposes of this section.
494	511		The definition of materiality provided in this subsection shall not
495	512		apply for purposes of the Group Capital Calculation I nstructions or
496	513		the Liquidity Stress Test Framework.
497	514		E. Subject to subsection B of Section 6 1636 of this act title,
498	515		each registered insurer shall report to the Commissioner all
499	516		dividends and other distributions to shareholders within fifteen
500	517		(15) business days following the declaration thereof.
501	518		F. Any person within an insurance holding company system
502	519		subject to registration shall be required to provide complete and
503	520		accurate information to an insurer, where the information is
504	521		reasonably necessary to enable the insurer to comply with the
505	522		provisions of this act.
506	523		G. The Commissioner shall terminate the registration of any
507	524		insurer which demonstrates that it no longer is a member of an
508	525		insurance holding company system.
509		-	H. The Commissioner may require or allow two or more affiliated
510		-	insurers subject to registration to file a consolidated registration
511		-	statement.
512		-	I. The Commissioner may allow a n insurer which is authorized to
513		-	do business in this state and which is part of an insurance holding
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	553	+	H. The Commissioner may require or allow two or more affiliated
	554	+	insurers subject to registration to file a consolidated registration
	555	+	statement.
	556	+	I. The Commissioner may allow an insurer which is authorized to
	557	+	do business in this state and which is part of an insurance holding
540	558		company system to re gister on behalf of any affiliated insurer which
541	559		is required to register under subsection A of this section and to
542	560		file all information and material required to be filed under this
543	561		section.
544	562		J. The provisions of this section shall not apply to any
545	563		insurer, information or transaction if and to the extent that the
546	564		Commissioner by rule, regulation or order shall exempt the same from
547	565		the provisions of this section.
548	566		K. Any person may file with the Commissioner a disc laimer of
549	567		affiliation with any authorized ins urer or a disclaimer may be filed
550	568		by the insurer or any member of an insurance holding company system.
551	569		The disclaimer shall fully disclose all material relationships and
552	570		bases for affiliation between the person and the insurer as well as
553	571		the basis for disclaiming the affiliation. A disclaimer of
554	572		affiliation shall be deemed to have been granted unless the
555	573		Commissioner, within thirty (30) days following receipt of a
556	574		complete disclaimer, notifies the filing party the disclaimer is
557	575		disallowed. In the event o f disallowance, the disclaiming party may
558	576		request an administrative hearing, which shall be granted. The
559		-	disclaiming party shall be relieved of its duty to register under
560		-	this section if approval of the disclaimer has been granted by the
561		-	Commissioner, or if the disclaimer is deemed to have been approved.
562		-	L. 1. The ultimate controlling person of every insurer subject
563		-	to registration shall also file an annual enterprise risk report.
564	577
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589	603
	604	+	disclaiming party shall be relieved of its duty to register under
	605	+	this section if approval of the disclaimer has been granted by the
	606	+	Commissioner, or if the disclaimer is deemed to have been approved.
	607	+	L. 1. The ultimate controlling person of every insurer subject
	608	+	to registration shall also file an annual enterprise risk report.
590	609		The report shall, to the bes t of the ultimate controlling person's
591	610		knowledge and belief, identify the material risks within the
592	611		insurance holding company system that could pose enterprise risk to
593	612		the insurer. The report shall be filed with the lead state
594	613		Commissioner of the insurance holding company system as determined
595	614		by the procedures within the Financial Analysis Handbook adopted by
596	615		the National Association of Insurance Commissioners.
597	616		2. Except as provided below, the ultimate controlling person of
598	617		every insurer subject to regist ration shall concurrently file with
599	618		the registration an annual group capital calculation as directed by
600	619		the lead state commissioner. The report shall be completed in
601	620		accordance with the NAIC Group Capital Calculation Instructions,
602	621		which may permit the lead state commissioner to allow a controlling
603	622		person that is not the ultimate controlling person to file the group
604	623		capital calculation. The report shall be filed with the lead state
605	624		commissioner of the insurance holding company system as determined
606	625		by the commissioner in accordance with the procedures within the
607	626		Financial Analysis Handbook adopted by the NAIC. Insurance holding
608		-	company systems described below are exempt from f iling the group
609		-	capital calculation:
610		-	a. an insurance holding company system that has only one
611		-	insurer within its holding company structure, that
612		-	only writes business in its domestic state, and
613		-	assumes no business from any other insurer,
614	627
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639	653
	654	+	company systems described below are exempt from filing the group
	655	+	capital calculation:
	656	+	a. an insurance holding company system that has only one
	657	+	insurer within its holding compan y structure, that
	658	+	only writes business in its domestic state, and
	659	+	assumes no business from any other insurer,
640	660		b. an insurance holding company system that is required
641	661		to perform a group capital calculation specif ied by
642	662		the United States Federal Reserve Boar d. The lead
643	663		state commissioner shall request the calculation from
644	664		the Federal Reserve Board under the terms of
645	665		information sharing agreements in effect. If the
646	666		Federal Reserve Board cannot share the calculation
647	667		with the lead state commissioner, the insur ance
648	668		holding company system is not exempt from the group
649	669		capital calculation filing,
650	670		c. an insurance holding company system whose non -United-
651	671		States group-wide supervisor is located within a
652	672		reciprocal jurisdicti on as described in Section 5122
653	673		of Title 36 of the Oklahoma Statutes that recognizes
654		-	the ~~United States~~ state regulatory approach to group
	674	+	the U.S. state regulatory approach to group
655	675		supervision and group capital,
656	676		d. an insurance holding company system:
657		-	(1) that provides information to the lead state that
658		-	meets the requirements for accreditation under
659		-	the NAIC financial standards and accreditation
660		-	program, either directly or indirectly through
661		-	the group-wide supervisor, who ha s determined
662		-	such information is satisfactory to allow the
663		-	lead state to comply with the NAIC group
664	677
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685	699		21
686	700		22
687	701		23
688	702		24
689	703
	704	+	(1) that provides information to the lead state that
	705	+	meets the requirements for accreditation under
	706	+	the NAIC financial standards and accreditation
	707	+	program, either directly or indirectly through
	708	+	the group-wide supervisor, who has determined
	709	+	such information is satisfactory to allow the
	710	+	lead state to comply with the NAIC group
690	711		supervision approach, as detai led in the NAIC
691	712		Financial Analysis Handbook, and
692	713		(2) whose non-United-States group-wide supervisor
693	714		that is not in a reciprocal jurisdiction
694	715		recognizes and accepts, as specified by the
695	716		commissioner in regulation, the group capital
696	717		calculation as the world -wide group capital
697		-	assessment for ~~United States~~ insurance groups who
698		-	~~operate~~ in that jurisdiction,
	718	+	assessment for U.S. insurance groups who operate
	719	+	in that jurisdiction,
699	720		e. notwithstanding the provisions of subparagraphs c and
700	721		d of paragraph 2 of subsection L of this section, a
701	722		lead state commissioner shall require the group
702	723		capital calculation for U.S. operations of any non -
703		-	United-States-based insurance holding company system
	724	+	United-States based insurance holding company system
704	725		where, after any necessary consultation with other
705	726		supervisors or officials, it is deemed appropriate by
706	727		the lead state commissioner for prudential oversight
707		-	and solvency monitoring purposes or for ensuring the
708		-	competitiveness of the insurance marketplace,
709		-	f. notwithstanding the exemptions from filing the group
710		-	capital calculation stated in subparagraphs a through
711		-	d of paragraph 2 of subsection L of this section, the
712		-	lead state Commissioner has the discretion to exempt
713		-	the ultimate controlling person from filing the annual
714	728
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739	754
	755	+	and solvency monitoring purposes or for ensuring the
	756	+	competitiveness of the insurance marketplace,
	757	+	f. notwithstanding the exemptions from filing the group
	758	+	capital calculation stated in subparagraphs a through
	759	+	d of paragraph 2 of subsection L of this section, t he
	760	+	lead state commissioner has the discretion to exempt
	761	+	the ultimate controlling person from filing the annual
740	762		group capital calculation or to accept a limited group
741	763		capital filing or report in accordance with criteria
742	764		as specified by the commissioner in r egulation, and
743	765		g. if the lead state commissioner determines that an
744	766		insurance holding company system no longer meets one
745	767		or more of the requirements for an exemption from
746	768		filing the group capital calculation und er this
747	769		section, the insurance holding compan y system shall
748	770		file the group capital calculation at the next annual
749	771		filing date unless given an extension by the lead
750	772		state commissioner based on reasonable grounds shown;
751	773		3. The ultimate controlling person of every insurer subject to
752	774		registration and also scoped into the NAIC Liquidity Stress Test
753	775		Framework shall file the results of a specific year's Liquidity
754	776		Stress Test. The filing shall be made to the lead state insurance
755	777		commissioner of the insurance hold ing company system as determined
756		-	by the procedures within the Financial Analysis Handbook adopted by
757		-	the NAIC:
758		-	a. the NAIC Liquidity Stress Test Framework i ncludes
759		-	Scope Criteria applicable to a specific data year.
760		-	These Scope Criteria are reviewed at least annually by
761		-	the Financial Stability Task Force or its successor.
762		-	Any change to the NAIC Liquidity Stress Test Framework
763		-	or to the data year for which the Scope Criteria are
764	778
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789	804
	805	+	by the procedures within the Financial Analysis Handbook adopted by
	806	+	the NAIC:
	807	+	a. the NAIC Liquidity Stress Test Framework includes
	808	+	Scope Criteria applicable to a specific data year.
	809	+	These Scope Criteria are reviewed at least annually by
	810	+	the Financial Stability Task Fo rce or its successor.
	811	+	Any change to the NAIC Liquidity Stress Test Framework
	812	+	or to the data year for which the Scope Criteria are
790	813		to be measured shall be effective on January 1 of the
791	814		year following the calendar year when such changes are
792	815		adopted. Insurers meeting at least one threshold of
793	816		the Scope Criteria are considered scoped into the NAIC
794	817		Liquidity Stress Test Framework for the specified data
795	818		year unless the lead state insurance commissioner, in
796	819		consultation with the NAIC Financial Stability Task
797	820		Force or its successor, determines the insurer should
798	821		not be scoped into the Framework for that data year.
799	822		Similarly, insurers that do not trigger at least one
800	823		threshold of the Scope Criteria are considered scoped
801	824		out of the NAIC Liquidity Stress Test Framewor k for
802	825		the specified data year, unless the lead state
803	826		insurance commissioner, in consultation with the NAIC
804	827		Financial Stability Task Force or its successor,
805	828		determines the insurer should be scoped into the
806		-	Framework for that data year. Regulators wish to
807		-	avoid having insurers scoped in and out of the NAIC
808		-	Liquidity Stress Test Framework on a frequent basis.
809		-	The lead state insurance commissioner, in consultation
810		-	with the Financial Stability Task Force or its
811		-	successor, will assess this concern as part of the
812		-	determination for an insurer, and
813	829
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838	855
	856	+	Framework for that data year. Regulators wish to
	857	+	avoid having insurers scoped in and out of the NAIC
	858	+	Liquidity Stress Test Framework on a frequent basis.
	859	+	The lead state insurance commissioner, in consultation
	860	+	with the Financial Stability Task Force or its
	861	+	successor, will assess this concern as part of th e
	862	+	determination for an insurer, and
839	863		b. the performance of, and filing of the results from, a
840	864		specific year's Liquidity Stress Test shall comply
841	865		with the NAIC Liquidity Stress Test Framework's
842	866		instructions and reporting templates for that year and
843	867		any lead state insurance commissioner determinations,
844	868		in consultation with the Financial Stability Task
845	869		Force or its successor, provided within the Framework.
846	870		M. The failure to file a registration statement or any summa ry
847	871		of the registration statement or enterpris e risk filing required by
848	872		this section within the time specified for filing shall be a
849	873		violation of this section.
850	874		SECTION 3. AMENDATORY 36 O.S. 2021, Section 1640, is
851	875		amended to read as follows:
852	876		Section 1640. A. Documents, mater ials or other information in
853	877		the possession or control of the Insurance Department that are
854	878		obtained by or disclosed to the Commissioner or any other person in
855	879		the course of an examination or investigation made pursuant to
856		-	Section 7 1637 of this act title and all information reported or
857		-	provided to the Insurance Department pursuant to paragraphs 12 and
858		-	13 of subsection B of Section 3 1633 of this act title, Section 5
859		-	1635 of this act title, Section 6 1636 of this act title, and
860		-	Section 11 1639 of this act title are recognized by this state as
861		-	being proprietary and containing trade secrets and shall be
862		-	confidential by law and privileged, shall not be subject to open
863	880
864		-	ENGR. H. B. NO. 1497 Page 18 1
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888	906
	907	+	Section 7 1637 of this act title and all information reported or
	908	+	provided to the Insurance Department pursuant to paragraphs 12 and
	909	+	13 of subsection B of Section 3 1633 of this act title, Section 5
	910	+	1635 of this act title, Section 6 1636 of this act title, and
	911	+	Section 11 1639 of this act title are recognized by this state as
	912	+	being proprietary and containing trade secrets and shall be
	913	+	confidential by law and privileged, shall not be subject to open
889	914		records, or freedom of information, shall not be subject to
890	915		subpoena, and shall not be subject to discovery or admissible in
891	916		evidence in any private civil action. However, the Commissioner is
892	917		authorized to use the documents, materials or other information in
893	918		the furtherance of any regulatory or legal action brought as a part
894	919		of the Commissioner's official duties. The Commissioner shall not
895	920		otherwise make the documents, materials or other information public
896	921		without the prior written consent of the insurer to which it
897	922		pertains unless the Commissioner, aft er giving the insurer and its
898	923		affiliates who would be affected thereby notice and opportunity to
899	924		be heard, determines that the interest of policyholders,
900	925		shareholders or the public will be served by the publication
901	926		thereof, in which event the Commissioner may publish all or any part
902	927		in such manner as may be deemed appropriate.
903	928		1. For purposes of the information reported and provided to the
904	929		Department of Insurance pursuant to paragraph 2 of subsection L of
905	930		Section 1635 of this title, the Commissioner shall maintain the
906		-	confidentiality of the group capital calculation and group capital
907		-	ratio produced within the calculation and any group capital
908		-	information received from an insurance holding company supervised by
909		-	the Federal Reserve Board or any U nited States group wide
910		-	supervisor; and
911		-	2. For purposes of the information reported and provided to the
912		-	Department of Insurance pursuant to paragraph 3 of subsection L of
913	931
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938	957
	958	+	confidentiality of the group cap ital calculation and group capital
	959	+	ratio produced within the calculation and any group capital
	960	+	information received from an insurance holding company supervised by
	961	+	the Federal Reserve Board or any U.S. group wide supervisor; and
	962	+	2. For purposes of the inf ormation reported and provided to the
	963	+	Department of Insurance pursuant to paragraph 3 of subsection L of
939	964		Section 1635 of this title, the Commissioner shall maintain the
940	965		confidentiality of the Liquidity Stress Te st results and supporting
941	966		disclosures and any Liquidity Stress Test information received from
942	967		an insurance holding company supervised by the Federal Reserve Board
943	968		and non-United-States group wide supervisors.
944	969		B. Neither the Commissioner nor any person who received
945	970		documents, materials or other infor mation while acting under the
946	971		authority of the Commissioner or with whom such documents, materials
947	972		or other information are shared pursuant to this act shall be
948	973		permitted or required to testify in any private ci vil action
949	974		concerning any confidential docume nts, materials or information
950	975		subject to subsection A of this section.
951	976		C. In order to assist in the performance of the Commissioner's
952	977		duties, the Commissioner:
953	978		1. May share documents, materials or other information,
954	979		including the confidential and privile ged documents, materials or
955	980		information subject to subsection A of this section, including
956	981		proprietary and trade secret documents and materials, with other
957		-	state, federal and international regulatory agencies, with the
958		-	National Association of Insurance Commissioners (NAIC) and its
959		-	affiliates and subsidiaries, with any third-party consultants
960		-	designated by the Commissioner, and with state, federal and
961		-	international law enforcement authorities, including members of any
962		-	supervisory college described in Section 8 1638 of this act title,
963	982
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968	988		5
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970	990		7
971	991		8
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974	994		11
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976	996		13
977	997		14
978	998		15
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980	1000		17
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983	1003		20
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985	1005		22
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987	1007		24
988	1008
	1009	+	state, federal and international regulatory agencies, w ith the
	1010	+	National Association of Insurance Com missioners (NAIC) and its
	1011	+	affiliates and subsidiaries, with any third-party consultants
	1012	+	designated by the Commissioner, and with state, federal and
	1013	+	international law enforcement authorities, including members of any
	1014	+	supervisory college described in Section 8 1638 of this act title,
989	1015		provided that the recipient agrees in writing to maintain the
990	1016		confidentiality and privileged status of the document, material or
991	1017		other information, and has verified in writing the lega l authority
992	1018		to maintain confidentiality;
993	1019		2. Notwithstanding paragraph 1 of this subsection, may only
994	1020		share confidential and privileged documents, material or information
995	1021		reported pursuant to paragraph 1 of subsection L of Section 5 1635
996	1022		of this act title with Commissioners of states having statutes or
997	1023		regulations substantially similar to subsection A of this section
998	1024		and who have agreed in writing not to disclose such information;
999	1025		3. May receive documents, materials or information, including
1000	1026		otherwise confidential and privileged documents, materials or
1001	1027		information, including proprietary and trade -secret information,
1002	1028		from the NAIC and its affiliates and subsidiaries and from
1003	1029		regulatory and law enforcement officials of other foreign or
1004	1030		domestic jurisdictions, and shall maintain as confidential or
1005	1031		privileged any document, material or information received with
1006	1032		notice or the understanding that it is confidential or privileged
1007		-	under the laws of the jurisdiction that is the source of the
1008		-	document, material or information; and
1009		-	4. Shall enter into written agreements with the NAIC and any
1010		-	third-party consultant designated by the Commissioner governing
1011		-	sharing and use of information provided pursuant to this act
1012		-	consistent with this subsection that shall:
1013	1033
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1016	1037		3
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1018	1039		5
1019	1040		6
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1021	1042		8
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1038	1059
1039		-	a. specify procedures and protocols regarding the
	1060	+	under the laws of the jurisdiction that is the source of the
	1061	+	document, material or infor mation; and
	1062	+	4. Shall enter into written agre ements with the NAIC and any
	1063	+	third-party consultant designated by the commissioner governing
	1064	+	sharing and use of information provided pursuant to this act
	1065	+	consistent with this subsection that shall:
	1066	+	a. specify proceduresan and protocols regarding the
1040	1067		confidentiality and security of information shared
1041	1068		with the NAIC and its affiliates and subsidiaries or a
1042	1069		third-party consultant designated by the Commissioner
1043	1070		pursuant to this act, including procedures and
1044	1071		protocols for sharing by the NAIC with other state,
1045	1072		federal or international regulators . The agreement
1046	1073		shall provide that the recipient agrees in writing to
1047	1074		maintain the confidentiality and privileged status of
1048	1075		the documents, materials or other information and has
1049	1076		verified in writing the legal authority to ma intain
1050	1077		such confidentiality ,
1051	1078		b. specify that ownership of information shared with the
1052	1079		NAIC and its affiliates and subsidiaries or a third-
1053	1080		party consultant pursuant to this act remains with the
1054	1081		Commissioner and the NAIC's or a third-party
1055	1082		consultant's, as designated by the Commissioner, use
1056		-	of the information is subject to the direction of the
1057		-	Commissioner,
1058		-	c. excluding documents, material or information reported
1059		-	pursuant to paragraph 3 of subsection L of Section
1060		-	1635 of this title, prohibit the NAIC or third -party
1061		-	consultant designated by the Commissioner from storing
1062		-	the information shared pursuant to this act in a
1063	1083
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1065	1086		2
1066	1087		3
1067	1088		4
1068	1089		5
1069	1090		6
1070	1091		7
1071	1092		8
1072	1093		9
1073	1094		10
1074	1095		11
1075	1096		12
1076	1097		13
1077	1098		14
1078	1099		15
1079	1100		16
1080	1101		17
1081	1102		18
1082	1103		19
1083	1104		20
1084	1105		21
1085	1106		22
1086	1107		23
1087	1108		24
1088	1109
	1110	+	of the information is subject to the direction of the
	1111	+	Commissioner,
	1112	+	c. excluding documents, material or information reported
	1113	+	pursuant to paragraph 3 of subsection L of Section
	1114	+	1635 of this title, prohibit the NAIC or thir d-party
	1115	+	consultant designated by the Commissioner from storing
	1116	+	the information shared pursuant to this act in a
1089	1117		permanent database after the underlying analysis is
1090	1118		completed,
1091	1119		d. require prompt notice to be given to an insurer whose
1092	1120		confidential information in the possession of the NAIC
1093	1121		or a third-party consultant designated by the
1094	1122		Commissioner pursuant to this act is subject to a
1095	1123		request or subpoena to the NAIC or a third-party
1096	1124		consultant designated by the Commissioner for
1097	1125		disclosure or production, and
1098	1126		d.
1099	1127		e. require the NAIC and its affiliates and subsidiaries
1100	1128		or a third-party consultant designated by the
1101	1129		Commissioner to consent to intervention by an insurer
1102	1130		in any judicial or administrative action in which the
1103	1131		NAIC and its affiliates and subsidiaries or a third-
1104	1132		party consultant designated by the Commissioner may be
1105	1133		required to disclose confidential information about
1106		-	the insurer shared with the NAIC and its affiliates
1107		-	and subsidiaries or a third-party consultant
1108		-	designated by the Commissioner pursuant to this act.
1109		-	f. for documents, material or information reported
1110		-	pursuant to paragraph 3 of subsection L of Section
1111		-	1635 of this title, in the case of an agreement
1112		-	involving a third-party consultant, provide for
1113	1134
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	1135	+	HB1497 HFLR Page 23
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1115	1137		2
1116	1138		3
1117	1139		4
1118	1140		5
1119	1141		6
1120	1142		7
1121	1143		8
1122	1144		9
1123	1145		10
1124	1146		11
1125	1147		12
1126	1148		13
1127	1149		14
1128	1150		15
1129	1151		16
1130	1152		17
1131	1153		18
1132	1154		19
1133	1155		20
1134	1156		21
1135	1157		22
1136	1158		23
1137	1159		24
1138	1160
	1161	+	the insurer shared with the NAIC and its affiliates
	1162	+	and subsidiaries or a third-party consultant
	1163	+	designated by the Commissioner pursuant to this act.
	1164	+	f. for documents, material or information reported
	1165	+	pursuant to paragraph 3 of subsection L of Section
	1166	+	1635 of this act, in the case of an agreement
	1167	+	involving a third-party consultant, provide for
1139	1168		notification of the identity of the consultant to the
1140	1169		applicable insurers.
1141	1170		D. The sharing of information by the Commissioner pursuant to
1142	1171		this act shall not constitute a delegation of regulatory authority
1143	1172		or rulemaking, and the Commissioner is solely responsible for the
1144	1173		administration, execution and enforceme nt of the provisions of this
1145	1174		act.
1146	1175		E. No waiver of any applicable privilege or claim of
1147	1176		confidentiality in the documents, materials or information shall
1148	1177		occur as a result of disclosure to the Commissioner under this
1149	1178		section or as a result of sharing as aut horized in subsection C of
1150	1179		this section.
1151	1180		F. Documents, materials or other information in the possession
1152	1181		or control of the NAIC or a third-party consultant designated by the
1153	1182		Commissioner pursuant to this act shall be confidential by law and
1154	1183		privileged, shall not be subject to open records or freedom of
1155	1184		information, shall not be subject to subpoena, and shall not be
1156		-	subject to discovery or admissible in evidence in any private civil
1157		-	action.
1158		-	G. The group capital calculation and resulting group capital
1159		-	ratio required under paragraph 2 of subsection L of Section 1635 of
1160		-	this title and the Liquidity Stress Test along with its results and
1161		-	supporting disclosures required under paragraph 3 of subsection L of
1162		-	Section 1635 of this title are regulatory tools for assessing group
1163	1185
1164		-	ENGR. H. B. NO. 1497 Page 24 1
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1165	1188		2
1166	1189		3
1167	1190		4
1168	1191		5
1169	1192		6
1170	1193		7
1171	1194		8
1172	1195		9
1173	1196		10
1174	1197		11
1175	1198		12
1176	1199		13
1177	1200		14
1178	1201		15
1179	1202		16
1180	1203		17
1181	1204		18
1182	1205		19
1183	1206		20
1184	1207		21
1185	1208		22
1186	1209		23
1187	1210		24
1188	1211
	1212	+	subject to discovery or admissible in evidence in any private civil
	1213	+	action.
	1214	+	G. The group capital c alculation and resulting group capital
	1215	+	ratio required under paragraph 2 of subsection L of Section 1635 of
	1216	+	this title and the Liquidity Stress Test along with its results and
	1217	+	supporting disclosures required under paragraph 3 of subsection L of
	1218	+	Section 1635 of this title are regulatory tools for asses sing group
1189	1219		risks and capital adequacy and group liquidity risks, respectively,
1190	1220		and are not intended as a means to rank insurers or insurance
1191	1221		holding company systems generally. Therefore, except as otherwise
1192	1222		may be required under the provisions of this tit le, the making,
1193	1223		publishing, disseminating, circulating or placing before the public,
1194	1224		or causing directly or indirectly to be made, published,
1195	1225		disseminated, circulated or placed before the public in a newspaper,
1196	1226		magazine or other publication, or in the form of a notice, circular,
1197	1227		pamphlet, letter or poster, or over any radio or television station
1198	1228		or any electronic means of communication available to the public, or
1199	1229		in any other way as an advertisement, announcement or statement
1200	1230		containing a representation or statement with regard to the group
1201	1231		capital calculation, group capital ratio, the Liquidity Stress Test
1202	1232		results, or supporting disclosures for the Liquidity Stress Test of
1203	1233		any insurer or any insurer group, or of any component derived in the
1204	1234		calculation by an insurer, broker, or other person engaged in any
1205	1235		manner in the insurance business would be misleading and is
1206		-	therefore prohibited; provided however, that if any materially false
1207		-	statement with respect to the group capital calculation, resulting
1208		-	group capital ratio, an inappropriate comparison of any amount to an
1209		-	insurer's or insurance group's group capita l calculation or
1210		-	resulting group capital ratio, Liquidity Stress Test result,
1211		-	supporting disclosures for the Liquidity Stress Test, or an
1212		-	inappropriate comparison of any amount to an insurer's or insurance
1213	1236
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1215	1239		2
1216	1240		3
1217	1241		4
1218	1242		5
1219	1243		6
1220	1244		7
1221	1245		8
1222	1246		9
1223	1247		10
1224	1248		11
1225	1249		12
1226	1250		13
1227	1251		14
1228	1252		15
1229	1253		16
1230	1254		17
1231	1255		18
1232	1256		19
1233	1257		20
1234	1258		21
1235	1259		22
1236	1260		23
1237	1261		24
1238	1262
	1263	+	therefore prohibited; provided however, that if any materially false
	1264	+	statement with respect to the gr oup capital calculation, resulting
	1265	+	group capital ratio, an inappropriate comparison of any amount to an
	1266	+	insurer's or insurance group's group capital calculation or
	1267	+	resulting group capital ratio, Liquidity Stress Test result,
	1268	+	supporting disclosures for the Liquidity Stress Test, or an
	1269	+	inappropriate comparison of any amount to an insurer's or insurance
1239	1270		group's Liquidity Stress Test result or supporting disclosures is
1240	1271		published in any written publication and the insurer is able to
1241	1272		demonstrate to the Commission er with substantial proof the falsity
1242	1273		of such statement or the inappropriateness, as the case may be, then
1243	1274		the insurer may publish announcements in a written publication if
1244	1275		the sole purpose of the announcement is to rebut the materially
1245	1276		false statement.
1246	1277		SECTION 4. This act shall beco me effective November 1, 2025.
1247		-	Passed the House of Representatives the 24th day of March, 2025.
1248	1278
1249		-
1250		-
1251		-
1252		-	Presiding Officer of the House
1253		-	of Representatives
1254		-
1255		-
1256		-
1257		-	Passed the Senate the _____ day of __________, 2025.
1258		-
1259		-
1260		-
1261		-
1262		-	Presiding Officer of the Senate
1263		-
1264		-
	1279	+	COMMITTEE REPORT BY: COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT
	1280	+	OVERSIGHT, dated 03/03/2025 – DO PASS, As Amended.
1265	1281
1266	1282