North Carolina SB 51: Unborn Child Protection From Dismemberment.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 51

Short Title: Maintain NAIC Accreditation of DOI.-AB (Public)
Sponsors: Senators Johnson, Britt, and Settle (Primary Sponsors).
Referred to: Rules and Operations of the Senate
February 5, 2025
*S51-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MAINTAIN NAIC ACCREDITATION OF THE DEPARTMENT OF 2
INSURANCE BY IMPLEMENTING GROUP CAPITAL CALCULATION AND 3
LIQUIDITY STRESS TEST REQUIREMENTS AND TO MAKE VARIOUS 4
CONFORMING CHANGES, AS RECOMMENDED BY THE DEPARTMENT OF 5
INSURANCE. 6
The General Assembly of North Carolina enacts: 7
8
PART I. IMPLEMENT GROUP CAPITAL CALCULATION AND LIQUIDITY STRESS 9
TEST REQUIREMENTS FOR INSURANCE HOLDING COMPANY SYSTEMS 10
SECTION 1. Article 19 of Chapter 58 of the General Statutes is amended by adding 11
the following new sections to read: 12
"§ 58-19-26. Group capital calculation. 13
(a) Reporting Requirement. – The ultimate controlling person of every insurer subject to 14
registration pursuant to G.S. 58-19-25 shall concurrently file with the registration an annual 15
group capital calculation report. The report shall be filed with the lead state commissioner. 16
(b) Exemptions. – The ultimate controlling person of any of the following is exempt from 17
the filing requirement of subsection (a) of this section: 18
(1) An insurance holding company system that (i) has only one insurer within its 19
holding company structure, (ii) only writes insurance business, (iii) is only 20
licensed in its state of domicile, and (iv) assumes no business from any other 21
insurer. 22
(2) An insurance holding company system that is required to perform a group 23
capital calculation specified by the United States Federal Reserve Board. 24
When this exemption applies, the lead state commissioner shall request the 25
calculation from the United States Federal Reserve Board. If the United States 26
Federal Reserve Board cannot share the calculation with the lead state 27
commissioner under the terms of any information sharing agreements in 28
effect, then the insurance holding company system is not exempt from the 29
group capital calculation filing. 30
(3) An insurance holding company system whose non-United States group-wide 31
supervisor is located within a reciprocal jurisdiction that recognizes the United 32
States state regulatory approach to group supervision and group capital. 33
(4) An insurance holding company system that meets both of the following 34
requirements: 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 51-First Edition
a. The insurance holding company system provides information to the 1
lead state commissioner that meets the requirements for accreditation 2
under the NAIC financial standards and accreditation program. The 3
insurance holding company may provide this information either 4
directly or indirectly through its group-wide supervisor. If provided 5
indirectly through a group-wide supervisor, the supervisor is 6
responsible for determining whether the information provided is 7
sufficient to permit the lead state commissioner to comply with the 8
NAIC group supervision approach, as detailed in the NAIC Financial 9
Analysis Handbook. 10
b. The insurance holding company system's non-United States 11
group-wide supervisor is not in a reciprocal jurisdiction but 12
nonetheless recognizes the group capital calculation as the worldwide 13
group capital assessment for United States insurance groups who 14
operate in that jurisdiction. 15
(c) Recognition of Group Capital Calculation. – For purposes of subdivision (b)(4) of 16
this section, a non-United States jurisdiction recognizes the group capital calculation if it satisfies 17
any of the following criteria: 18
(1) A competent regulatory authority in the jurisdiction affirms that insurers and 19
insurance groups whose lead state is accredited by the NAIC under the NAIC 20
accreditation program shall be subject only to worldwide prudential insurance 21
group supervision, including worldwide group governance, solvency and 22
capital, and reporting, as applicable, by that jurisdiction's lead state 23
commissioner and will not be subject to group supervision, including 24
worldwide group governance, solvency and capital, and reporting, at the level 25
of the worldwide parent undertaking of the insurance or reinsurance group by 26
the non-United States jurisdiction. 27
(2) A competent regulatory authority in the jurisdiction affirms that information 28
regarding insurers and their parent, subsidiary, or affiliated entities, if 29
applicable, shall be provided to the lead state commissioner in accordance 30
with an information sharing agreement in the form of a memorandum of 31
understanding or similar document. Acceptable information sharing 32
agreements include the International Association of Insurance Supervisors 33
Multilateral Memorandum of Understanding or other multilateral memoranda 34
of understanding coordinated by the NAIC. The jurisdic