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HB 1124

AN ACT to amend and reenact sections 26.1-10-01, 26.1-10-04, 26.1-10-05, and 26.1-10-07 of the North Dakota Century Code, relating to the standards and management of an insurer with an insurance holding company system and the confidential treatment of investigation and examination records of insurance holding companies.

69th Legislative Assembly (2025-26)

Strengthens ND oversight of insurance holding company groups by expanding registration, reporting, and use of group supervision tools, while protecting investigation records.

Filed with Secretary Of State 03/18
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WeVote Research Nonpartisan
Bill Summary · HB 1124

HB 1124 — Insurance Holding Company Systems; Confidentiality of Investigation/Examination Records (North Dakota)

Status: Filed with Secretary of State 03/18/2025
Introduced: 11/12/2024 (Industry, Business and Labor Committee; at the request of the Insurance Commissioner)

Purpose / Intent

The bill updates North Dakota’s statutory framework for insurers that are members of insurance holding company systems. Its primary goals are to (1) modernize definitions and supervisory tools related to large, often multinational, insurance groups; (2) strengthen registration and reporting requirements for insurers in holding company systems; and (3) clarify confidential treatment of investigation and examination records related to insurance holding companies.

Key provisions and changes

  • Definitions: Adds and clarifies several terms used in holding‑company supervision, including:

    • “Enterprise risk” — events or activities that could materially and adversely affect an insurer’s financial condition or cause risk‑based capital to fall to company action level.
    • “Groupwide supervisor,” “group capital calculation instructions,” “liquidity stress test framework,” and “scope criteria” — aligning statute to model supervisory concepts and NAIC tools.
    • “Internationally active insurance group” — defined by objective thresholds: (a) premiums written in at least three countries; (b) ≥10% of gross premiums written outside the U.S.; and (c) a three‑year rolling average of either total assets ≥ $50 billion or total gross written premiums ≥ $10 billion.
    • Clarifies “control,” including a presumption of control when a person directly or indirectly owns, controls, or holds voting securities or proxies representing 10% or more of voting securities (presumption may be rebutted).

  • Registration and reporting (section 26.1‑10‑04):

    • Every insurer authorized to do business in ND that is a member of an insurance holding company system must register with the Insurance Commissioner.
    • Registration must occur within 15 days after becoming subject to registration; thereafter annual registration is due by March 1 for the previous calendar year (subject to extension for good cause).
    • Registration statements (on commissioner‑approved form) must include up‑to‑date information about capital structure, financial condition, ownership and management, identity/relationships among members of the holding company system, and specified intercompany agreements and transactions (text indicates the list of required disclosures but is truncated in the provided copy).

  • Commissioner authority:

    • The Commissioner may require insurers not otherwise subject to ND registration to provide copies of registration statements or summaries filed in their domiciliary jurisdictions.
    • The Commissioner may determine that control exists after notice and opportunity to be heard and specific findings, even if the statutory presumption does not apply.

  • Confidentiality (general intent from title / bill summary):

    • The act addresses confidential treatment of investigation and examination records of insurance holding companies. (The enrollment text and bill title indicate confidentiality provisions, though the provided excerpt does not include the full text of those specific sections.)

Who is affected

  • Insurers authorized to write business in North Dakota that are members of insurance holding company systems (including domestic and many foreign-domiciled insurers doing business in ND).
  • Insurance holding companies and affiliates that engage in transactions with ND‑authorized insurers (subject to new disclosure and supervisory expectations).
  • The Insurance Commissioner’s office (expanded supervisory tools, registration processing, and potential examinations).
  • Indirectly, policyholders and creditors — through enhanced group supervision and regulatory transparency designed to protect insurer solvency.

Procedural / timeline notes

  • Registration deadlines specified: initial registration within 15 days of becoming subject; annual registration due March 1 covering the prior calendar year (commissioner may extend for good cause).
  • The statutory additions adopt/authorize use of nationally developed tools (e.g., NAIC group capital and liquidity stress test frameworks) and provide definitions needed to apply those tools to “internationally active” groups.

Expected impact

  • Strengthens regulator authority and data collection for holding‑company oversight, particularly for large or internationally active groups.
  • May increase compliance and reporting obligations for insurers and their affiliates doing business in North Dakota.
  • Enhances confidentiality safeguards for supervisory records (limiting public disclosure of sensitive investigation/examination materials), while preserving regulator access and enforcement options.

If you would like, I can:
- Extract and summarize the specific filing / disclosure list in section 26.1‑10‑04 if you provide the full text of the truncated portions; or
- Prepare a short checklist for insurers to comply with the new registration and reporting timing and content requirements.

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

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