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Bill

SB 51

An Act providing for individual and group health care insurance coverage protections and for core health benefits; imposing penalties; and providing for applicability and for regulations.

2025-2026 Regular Session Introduced by Lisa Boscola and 21 co-sponsors

The bill requires ultimate controlling persons of insured holding companies to file an annual group capital calculation to maintain NAIC accreditation, with specific exemptions and

Referred to Banking & Insurance
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Bill Summary · SB 51

SB 51 — "Maintain NAIC Accreditation of DOI" (summary)

Note: This summary focuses on the version titled “Maintain NAIC Accreditation of DOI,” which adds group capital and liquidity reporting requirements for insurance holding company systems. (Status shown as Withdrawn From Committee; introduced per bill header.)

Main purpose

To help the state Department of Insurance (DOI) satisfy NAIC financial regulatory standards (and thereby maintain NAIC accreditation) by requiring standardized group‑level capital and liquidity reporting from insurance holding company systems and by clarifying when filings are required or may be exempted.

Key provisions (what the bill would do)

  • Adds a new statutory group capital calculation requirement (to Article 19, Chapter 58): the ultimate controlling person of each registered insurer must file an annual group capital calculation report concurrently with registration filings. The report is filed with the lead‑state commissioner.
  • Establishes enumerated exemptions from the filing requirement, including:
    • Holding systems with only one insurer, writing only in the state of domicile and assuming no business from others;
    • Holding systems subject to an equivalent group capital calculation performed by the U.S. Federal Reserve (with the lead commissioner able to request that calculation);
    • Systems whose non‑U.S. group‑wide supervisor is in a “reciprocal” jurisdiction that recognizes U.S. state group supervision approaches; and
    • Systems that provide information demonstrating they already meet NAIC accreditation/group supervision reporting requirements (including via a group‑wide supervisor).
  • Defines criteria for when a foreign jurisdiction “recognizes” the group capital calculation (e.g., acceptable information‑sharing MOUs such as the IAIS multilateral MMoU).
  • Gives the lead state commissioner discretion to:
    • Require filings for U.S. operations of non‑U.S. groups when needed for prudential oversight or market competitiveness;
    • Grant limited exemptions or permit a limited group filing for smaller groups that meet specific conditions (example threshold in text: under $1 billion annual direct written + unaffiliated assumed premium and other constraints).
  • Requires the lead commissioner to consider NAIC lists/reports when evaluating exemptions and to provide documented justification to NAIC if the commissioner’s determination differs.
  • (Title and purpose also reference liquidity stress testing; the bill ties group capital and liquidity supervision into maintaining NAIC accreditation and group supervision standards.)

Who would be affected

  • Insurance holding company systems doing business in the state — particularly the “ultimate controlling person” that must prepare and file group capital calculations.
  • Insurers domiciled in the state (through their holding companies) and their regulators (DOI/lead state commissioner).
  • Non‑U.S. group‑wide supervisors and foreign jurisdictions (to the extent recognition/reciprocity is claimed).
  • Potentially smaller groups if the lead commissioner exercises discretion to require filings.

Procedural / timeline notes

  • The bill imposes an annual reporting obligation (filed concurrently with registration).
  • It builds NAIC‑aligned processes (information sharing, recognition criteria, discretionary exemptions) so the DOI can comply with NAIC accreditation expectations.
  • The bill, per the header, was introduced and later marked “Withdrawn From Com.” If re‑introduced or amended, implementation timing would depend on subsequent enactment and any rulemaking by DOI.

Expected effects / tradeoffs

  • Policy goal: preserve state DOI NAIC accreditation and strengthen group‑wide supervision to protect solvency and market stability.
  • Administrative impact: larger insurance groups should expect additional standardized reporting and possible stress testing; DOI will gain more tools and information for group supervision.
  • Smaller groups may be exempt or eligible for a simplified filing, but some firms could face increased compliance costs depending on the lead commissioner’s exercise of discretion.

If you want, I can:
- Extract and present the exact statutory text changes the bill would make (by section and proposed language), or
- Draft a short one‑page explainer for affected insurers outlining compliance steps.

Compiled from official sources — confirm details with the bill’s official record.

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