Bill > S540

This bill establishes a new chapter in the General Laws concerning Own Risk and Solvency Assessment (ORSA), which is a confidential internal assessment conducted by an insurer or insurance group to evaluate the risks associated with their business plan and their ability to cover those risks with available capital. The bill defines key terms like "insurance group" and "insurer" to encompass various types of financial entities, and "ORSA Guidance Manual" as the standard developed by the National Association of Insurance Commissioners (NAIC) for conducting these assessments. Insurers are required to maintain a risk management framework and regularly conduct an ORSA, submitting an ORSA Summary Report to the commissioner upon request, or if they are part of an insurance group where the commissioner is the lead supervisor. Exemptions from these requirements are provided for smaller insurers and insurance groups based on their annual premium volume, though the commissioner can still mandate an ORSA under certain circumstances, such as financial distress or unique business structures. The bill also outlines provisions for the confidentiality and sharing of ORSA-related information among regulatory bodies, with penalties for failing to file the required reports on time, and clarifies that the new chapter applies to various entities previously governed by other chapters of the General Laws.