Insurance holding company systems; group capital calculation and liquidity stress test.
Impact
If enacted, HB82 will significantly alter how insurance holding companies operate within Virginia. It mandates each insurer within a holding company system to register with the Commission, providing current financial condition and ownership details. This increases regulatory oversight, requiring regular reports and compliance with financial assessments that determine capital adequacy. Such measures are designed to mitigate risks and provide regulators with better tools to monitor the financial health of insurers, which is crucial given the interconnectedness of financial entities in the insurance market.
Summary
House Bill 82 is focused on enhancing the regulation of insurance holding company systems in Virginia. It emphasizes the need for comprehensive group capital calculations and the establishment of liquidity stress tests as part of the risk management framework. The bill aims at ensuring that these holding companies maintain adequate capital against their risks, thereby improving overall financial stability within the insurance sector. The integration of these regulatory measures is a response to ongoing trends in financial oversight and is intended to protect policyholders and maintain market integrity.
Sentiment
The sentiment surrounding HB82 is generally positive among regulatory bodies who view the bill as a necessary step toward ensuring financial safety within the insurance industry. Proponents argue that stringent regulatory measures will help preemptively identify and mitigate risks within the insurance holding company systems. However, some industry stakeholders express concern about the operational burden that additional reporting and compliance may impose on smaller insurers, highlighting a potential debate over the balance between regulatory necessity and industry flexibility.
Contention
Notable points of contention include concerns from smaller insurance companies about the feasibility of meeting the new regulatory requirements without incurring significant additional costs. Critics argue that while the overarching goal of financial stability and protection for policyholders is commendable, the implementation of such rigorous standards could disproportionately affect smaller insurers, potentially leading to reduced competition in the marketplace. The discussion around the bill emphasizes the need for a deep understanding of the practical implications for all stakeholders involved.
Data calls authorized, group capital calculations established for insurers, insurers required to complete a NAIC liquidity stress test, insurers required to file group capital calculations and results from the NAIC liquidity stress test, insurers required to secure a deposit or bond, limited long-term care insurance provided for and regulated, automobile insurance governing provisions modified, data classified, penalties provided, and technical changes made.
Certain loans and contract for deed maximum interest rate modification provision, group capital calculations for insurers establishments, Insurers completion of NAIC liquidity stress test requirement provision, and insurers filing group capital calculations and results from the NAIC liquidity stress test requirement provision, and insurers securing a deposit or bond requirement provision
Authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register, allowing certain life insurers to follow health financial reports and adopting certain provisions from the national association of insurance commissioners holding company system regulatory act relating to group capital calculations and liquidity stress testing.
Authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register, allowing certain life insurers to follow health financial reports and adopting certain provisions from the national association of insurance commissioners holding company system regulatory act relating to group capital calculations and liquidity stress testing.
The standards and management of an insurer with an insurance holding company system and the confidential treatment of investigation and examination records of insurance holding companies.
Authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register, allowing certain life insurers to follow health financial reports and adopting certain provisions from the national association of insurance commissioners holding company system regulatory act relating to group capital calculations and liquidity stress testing.
Authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register, allowing certain life insurers to follow health financial reports and adopting certain provisions from the national association of insurance commissioners holding company system regulatory act relating to group capital calculations and liquidity stress testing.
Enacting the Kansas protected cell captive insurance company act, providing for the redomestication of a foreign or alien captive insurance company and updating certain terms, requirements and conditions of the captive insurance act, reducing insurance company premium tax rates, creating parity between the insurance agent and public adjuster licensing requirements, authorizing insurers to file certain travel insurance policies under the accident and health line of insurance and authorizing the commissioner of insurance to select and announce the version of certain instructions, calculations and documents in effect for the upcoming calendar year and cause such announcement to be published in the Kansas register not later than December 1 of the current year.