Bill > SB714

This bill amends Section 1215 of the Insurance Code to add a new definition for "enterprise risk," which refers to any situation involving one or more affiliated companies of an insurer that, if not addressed, could negatively impact the insurer's financial health or ability to meet its obligations. This new definition is being added to existing definitions within the article, which include terms like "affiliate" (a company controlled by another), "control" (the power to direct management and policies), "insurance holding company system" (a group of affiliated companies where at least one is an insurer), "insurer" (an insurance company, with certain exclusions for government entities), "person" (an individual or business entity), "subsidiary" (an affiliate controlled by another company), and "business day" (a regular workday). The bill also clarifies the definition of "insurer" by excluding certain government entities and agencies.