Part I.

Enacts new GS 58-19-26 to require the ultimate controlling person of every insurer who is subject to registration to also file an annual group capital calculation report with the registration. Requires the report to be filed with the lead state commissioner. Sets out four categories of insurance holding company systems that are exempt from the filing requirement, including those that provide information to the lead state commissioner that meets the requirements for accreditation under the NAIC financial standards and accreditation program and whose non-US group-wide supervisor is not in a reciprocal jurisdiction but recognizes the group capital calculation as the worldwide group capital assessment for US insurance groups who operate in that jurisdiction. Sets out criteria that must be met for a non-US jurisdiction to recognize the group capital calculation and sets out criteria to use when determining whether the exemption applies. Despite the exemptions, requires the lead state commissioner to require filing of the group capital calculation for US operations of any non-US based insurance holding company system if the lead state commissioner determines that the filing is required for prudent oversight and solvency monitoring or for ensuring the competitiveness of the insurance marketplace. Allows the lead state commissioner to either (1) exempt the ultimate controlling person of an insurance holding company system from the filing requirement or (2) authorize the ultimate controlling person of an insurance holding company to file a limited group capital filing in lieu of the filing requirement if all of the following apply: (a) the insurance holding company system has annual direct written and unaffiliated assumed premium, including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than $1 billion; (b) the insurance holding company system does not include insurers within its holding company structure that are domiciled outside of the US or one of its territories; (c) the insurance holding company system does not include banking, depository, or other financial entity that is subject to an identified regulatory capital framework within its holding company structure; (d) the insurance holding company system attests that there are no material changes in transactions between insurers and non-insurers in the group that have occurred since the last filing of an annual group calculation report, if any; and (e) the non-insurers within the insurance holding company system do not pose a material financial risk to the insurer's ability to honor policyholder obligations. Sets out requirements for resuming filings when an exemption no longer applies.

Enacts new GS 58-19-27, which requires the ultimate controlling person of every insurer subject to registration to be included in the NAIC liquidity stress test framework and file a report with the lead state commissioner detailing the results of a specific year's liquidity stress test if: (1) the insurer meets the scope criteria of that data year's NAIC liquidity stress test framework or (2) the insurer did not meet the scope criteria of that data year's liquidity stress test framework, but the lead state commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, nonetheless determines the insurer should be included in the NAIC liquidity stress test framework for that data year. Requires the commissioner, in making this determination, to attempt to avoid the frequent inclusion or exclusion of insurers. Sets out requirements for the performance and reporting of results of the stress test. Allows the lead state commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, to exempt an ultimate controlling person from these reporting requirements; sets out what must be considered in making such an exemption. 

Enacts new GS 58-19-28 prohibiting, unless otherwise provided by law, the making, publishing, disseminating, circulating, or placing before the public, or causing it be done so directly or indirectly, in a publication, notice, electronic communication, or other specified communications available to the public, or in any other way as an advertisement, announcement, or statement containing a representation or statement with regard to the group capital calculation, group capital ratio, the liquidity stress test results, or supporting disclosures for the liquidity stress test of any insurer or any insurer group, or of any component derived in the calculation by any insurer, broker, or other person engaged in any manner in the insurance business. Sets out when announcements may be published in order to rebut a materially false or inappropriate statement.

Part II.

Amends GS 58-19-5, setting out terms used in the Insurance Holding Company System Regulatory Act to add and define the terms group capital calculation, lead state commissioner, limited group capital filing, liquidity stress test, NAIC, NAIC liquidity stress test framework, reciprocal jurisdiction, and scope criteria. 

Amends GS 59-19-25 to specify that the statute's exemption on disclosing information on the registration statement if the information is not material for the purposes of the statute does not apply to the new statutes above. Makes additional conforming changes. Makes conforming changes to GS 58-19-15.

Amends GS 58-19-40 by setting out confidentiality requirements for information provided to the Department of Insurance under the new statutes. Specifies that documents, materials, or other information in the possession or control of the Department of Insurance that are obtained by or disclosed to the Commissioner or any other person in the course of an examination or investigation made under GS 58-19-35, and all information reported or provided to the Department pursuant to subdivisions (11a) and (11b) of GS 58-19-15(b), GS 58-19-25, GS 58-19-30, and GS 58-19-38 are recognized by this State as being proprietary and to contain trade secrets. Allows the Commissioner to share proprietary and trade secret documents with state, federal, and internal regulatory agencies, and the NAIC. Also allows those documents and others already listed to be shared with any third-party consultants designated by the Commissioner. Allows entering into written agreements with any third-party consultant designated by the Commissioner governing sharing and use of information provided under the Article and amends the conditions that must be met in those circumstances, including issues around confidentiality, ownership of information, prohibitions on storage of information, notice requirements, consent to intervention in judicial or administrative actions, and notification when sharing documents with a third-party consultant. Makes conforming changes.

Part III.

Effective January 1, 2026.