Bill > S2517

This bill, titled "Relative to risk management and own risk and solvency assessment," amends various chapters of the General Laws to apply the provisions of a new Chapter 176V, concerning Own Risk and Solvency Assessment (ORSA), to a wide range of insurance entities and groups. ORSA is defined as a confidential internal assessment by an insurer or insurance group of the risks they face and whether they have enough capital to cover those risks, following guidelines developed by the National Association of Insurance Commissioners (NAIC). The bill specifies that insurers and insurance groups must conduct this assessment annually, or more often if their risk profile changes significantly. They will be required to submit an ORSA summary report to the Commissioner of Insurance upon request, though exemptions are provided for smaller entities based on their direct written and assumed premiums. The bill also establishes rules for the confidentiality and sharing of ORSA-related information among regulators, outlines penalties for failing to file reports, and grants the Commissioner authority to create necessary regulations. The new Chapter 176V will take effect on April 1, 2017.