Bill > S51

This bill aims to maintain the National Association of Insurance Commissioners (NAIC) accreditation for the Department of Insurance by implementing new requirements for insurance holding companies. Specifically, the bill introduces two key provisions: a group capital calculation and a liquidity stress test. The group capital calculation requires the ultimate controlling person of certain insurance holding companies to file an annual report evaluating the capital adequacy of their system, with various exemptions for smaller or specialized insurance groups. The liquidity stress test requires insurers meeting certain criteria to file a report detailing their ability to maintain sufficient liquidity under extreme market conditions. The bill also includes extensive provisions about confidentiality, specifying how these new financial reports can be shared between regulatory agencies while protecting sensitive business information. Additionally, the bill makes several technical amendments to existing insurance regulations, such as updating definitions and clarifying reporting requirements. These changes are designed to enhance regulatory oversight of insurance holding companies, improve financial transparency, and ensure that North Carolina's insurance regulations meet national accreditation standards. The new requirements will take effect on January 1, 2026, giving insurance companies time to prepare for the new reporting obligations.

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https://www.ncleg.gov/BillLookUp/2025/S51