Holding Company System Amendment Act of 2025

ENROLLED ORIGINAL
AN ACT
D.C. ACT 26-301
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
AP! 22, 2026
ToamendtheHoldingCompanySystemActof1993toupdatethegroupcapitalcalculationforthepurposeofinsuranceholdingcompanysystemgroupsolvencysupervisionandadda
liquiditystresstestformacroprudentialsurveillance.
BEITENACTEDBYTHECOUNCILOFTHEDISTRICTOFCOLUMBIA,Thatthisactmaybecitedasthe“HoldingCompanySystemAmendmentActof2026”.
Sec,2.TheHoldingCompanySystemActof1993,effectiveOctober21,1993(D.C.Law10-44;D.C.OfficialCode§31-701etseq.),isamendedasfollows:(a)Section2(D.C.OfficialCode§31-701)isamendedasfollows:
(1)Anewparagraph(3A-i)isaddedtoreadasfollows:“@Aci)“Groupcapitalcalculationinstructions”meansthegroupcapitalcalculationinstructionsasadoptedbytheNAICandasamendedbytheNAICfromtimeto
time,”. (2)Newparagraphs(SA-i)and(SA-ii)areaddedtoreadasfollows:“(5A-i)“Leadstate”meanstheonestatethattakestheleadwithrespecttoconductinggroup-widesupervisionoftheinsuranceholdingcompanysystemwithintheU.S.
solvencysystem,“(S5Acii)“Leadstatecommissioner”meansthecommissioneroftheleadstatefor
aninsurancegroup.”.(3)A newparagraph(5C-i)isaddedtoreadasfollows:*(5C-i)“NAICliquiditystresstestframework”meansaseparateNAICpublicationthatincludesahistoryoftheNAIC’sdevelopmentofregulatoryliquiditystresstesting,theLiquidityStressTestinstructionsandreportingtemplatesforaspecificdatayear,andthescopecriteriaapplicableforaspecificdatayearasadoptedbytheNAICandasamendedby
theNAICfromtimetotime.”.(4)Anewparagraph(6A)isaddedtoreadasfollows:(GA)“Scopecriteria”meansthedesignatedexposurebasesalongwithminimummagnitudesthereofforthespecifieddatayearasdetailedintheNAICliquiditystresstest
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ENROLLED ORIGINAL
framework,usedtoestablishapreliminarylistofinsurersconsideredscopedintotheNAIC
liquiditystresstestframework forthatdatayear.”.
(5)Anew paragraph(8A)isaddedtoreadasfollows:
“(8A) “Task Force”means theNAIC FinancialStabilityTask Force or its
successor.”
(b)Section6(D.C.OfficialCode§31-705)isamendedasfollows:
(1)Subsection(d)isamendedasfollows:
(A)Theexistingtestisredesignatedasparagraph(1).
(B)A newparagraph(2)isaddedtoreadasfollows:
“(2)Notwithstandingparagraph(1)ofthissubsection,forpurposesofthegroup
capitalcalculation,as describedin subsection(k-2)of this section,ortheNAIC liquiditystress
testframework,asdescribedinsubsection(k-3)ofthissection,sales,purchases,exchanges,
Joansorextensionsofcredit,investments,orguaranteesinvolvingone-halfof1% orlessofan
insurer’sadmittedassetsasof the 31stday of December shallbe material.”.
(2)New subsections(k-2)and(k-3)areaddedtoreadasfollows:
“(k-2)(1)Exceptasprovidedinthisparagraph,theultimatecontrollingpersonofevery
insurersubjecttoregistrationshallconcurrentlyfilewiththeregistrationanannualgroupcapital
calculationasdirectedbytheleadstatecommissioner.Thereportshallbecompletedin
accordancewiththegroupcapitalcalculationinstructions,whichmaypermittheleadstate
commissionertoallow a controllingpersonthatisnot theultimatecontrollingpersontofilethe
groupcapitalcalculation.Thereportshallbefiledwiththeleadstatecommissioneras
determinedby theCommissioner inaccordancewith theprocedureswithintheFinancial
AnalysisHandbookadoptedbytheNAIC.Thefollowinginsuranceholdingcompanysystems
areexemptftomfilingthegroupcapitalcalculation:
“(A)Aninsuranceholdingcompanysystemthat:
“(iHasonlyoneinsurerwithinitsholdingcompanystructurethat
onlywritesbusiness;
“ii)Isonly licensedin itsdomesticstate;and
“(iii)Assumesnobusinessfromanyotherinsurer;
“(B)An insuranceholdingcompanysystemrequiredtoperformagroup
capitalcalculationby theUnited StatesFederalReserve Board;provided,thatiftheFederal
Reserve Board refusesor isunableto sharethecalculationwith theleadstatecommissionerafter
arequestfromtheleadstatecommissioner,theinsuranceholdingcompanysystemisnotexempt
fromthegroupcapitalcalculationfiling;
“(C)An insuranceholdingcompanywhosenon-U.S.group-wide
supervisorislocatedwithina reciprocaljurisdiction,as definedinsection2(f-1)(11)(B)of the
Law on CreditforReinsuranceAct of 1993,effectiveOctober 15,1993 (D.C.Law 10-36;D.C,
OfficialCode§31-501(£-1)(11)(B)),thatrecognizestheU.S.stateregulatoryapproachtogroup
supervisionandgroupcapital;and
“(D)An insuranceholdingcompanysystem:
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ENROLLED ORIGINAL,
“(i)That providesinformationto theleadstatethatmeets the
requirementsforaccreditationundertheNAICfinancialstandardsandaccreditationprogram,
citherdirectlyorindirectlythroughthegroup-widesupervisor,whohasdeterminedsuch
informationissatisfactorytoallowtheleadstatetocomplywiththeNAICgroupsupervision
approach,as detailedintheNAIC FinancialAnalysisHandbook; and.
“(ii)Whose non-U.S.group-widesupervisorthatisnotina
reciprocaljurisdictionrecognizesandaccepts,asspecifiedbytheCommissionerinregulation,
thegroupcapitalcalculationastheworld-widegroupcapitalassessmentforU.S.insurance
groupswhooperateinthatjurisdiction.(2)Notwithstandingtheprovisionsofparagraph(1)(C)and(D)ofthis
subsection,theleadstatecommissionershallrequirethegroupcapitalcalculationforU.S.
operationsofany non-U.S.basedinsuranceholdingcompanysystemwhere,afteranynecessary
consultationwithothersupervisorsorofficials,itisdeemedappropriatebytheleadstate
commissionerforprudentialoversightandsolvencymonitoringpurposesorforensuringthe
competitivenessoftheinsurancemarketplace.
“(3)Notwithstandingtheexemptionsfromfilingthegroupcapitalcalculation
statedinparagraph(1)ofthissubsection,iftheleadstatecommissionerexemptstheultimate
controllingpersonfromfilingtheannualgroupcapitalcalculationoracceptsalimitedgroup
capitalfilingorreportinaccordancewithcriteriaasspecifiedbytheleadstatecommissionerin
regulation,theultimatecontrollingpersonshallbeexemptfromfilingtheannualgroupcapital
calculation.
“(4)Iftheleadstatecommissionerdeterminesthataninsuranceholdingcompany
systemnolongermeetsoneormoreoftherequirementsforanexemptionfromfilingthegroup
capitalcalculationunderthissection,theinsuranceholdingcompanysystemshallfilethegroup
capitalcalculationatthenext annualfilingdateunlessgivenan extensionby theleadstate
commissionerbasedonreasonablegroundsshown.
“(K-3)(1)Theultimatecontrollingpersonofeveryinsurersubjecttoregistrationunder
thisactand alsoscoped intotheNAIC liquiditystresstestframework shallfiletheresultsofa
specificyear’sliquiditystresstestwiththeleadstatecommissioner,asdeterminedbythe
procedureswithintheFinancialAnalysisHandbook adoptedby theNAIC.
“(2)(A)AnychangetotheNAICliquiditystresstestframeworkortothedata
yearforwhich thescope criteriaaretobe measured shallbe effectiveon January |of the year
followingthecalendaryearwhensuchchangesareadopted.
“(B)Forthepurposesofparagraph(1)ofthissubsection,insurersmeeting
atleastone thresholdof thescope criteriashal!be consideredscoped intotheNAIC liquidity
stresstestframework forthespecifieddatayearunlesstheleadstatecommissioner,in
consultationwith theTask Force,determinestheinsurershouldnot be scoped intotheframework
forthatdatayear,Insurersthatdonottriggeratleastonethresholdofthescopecriteriashallbe
consideredscopedout of theNAIC liquiditystresstestframework forthespecifieddatayear,
unlesstheleadstateinsurancecommissioner,inconsultationwiththeTask Force,determinesthe
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ENROLLED ORIGINAL
insurershouldbe scoped intotheNAIC liquiditystresstestframework forthatdatayear.
(3) When theDistrictisservingastheleadstatecommissioner,inconsultation
withtheTask Force,itshallevaluateconcernsof having insurersscoped inand outof theNAIC
liquiditystresstestframeworkonafrequentbasisaspartofthedeterminationforaninsurer.
“(4)Theperformanceof,andfilingoftheresultsfrom,aspecificyear’sliquidity
stresstestshallcomplywiththeNAICliquiditystresstestframework’sinstructionsand
reportingtemplatesforthatyearandanyleadstatecommissionerdeterminations,inconjunction
with theTask Force,providedwithintheNAIC liquiditystresstestframework.”
(c)Section7(D.C.OfficialCode§31-706)isamendedbyaddingnewsubsections(e)
and(£)toreadasfollows:
“(e)(1)(A)If an insurersubjectto thisactisdeemed by theCommissioner tobe ina
hazardousfinancialconditionas providedinsection2 of theStandardstoIdentifyInsurance
Companies Deemed to Be inHazardous FinancialConditionAct of 1993,effectiveOctober21,
1993 (D.C.Law 10-43;D.C. OfficialCode § 31-2101),or a conditionthatwould be grounds for
supervision,conservation,oradelinquencyproceeding,theCommissionermayrequirethe
insurertosecureand maintaineithera deposit,heldby theCommissioner,or a bond, as
determinedby theinsurerattheinsurer’sdiscretion,forthedurationof thecontractual
obligationsor agreementsheldby theinsureror thedurationof the existenceoftheconditionfor
which theCommissioner requiredthedepositorthebond.
“(B)IndeterminingwhethertoexercisetheCommissioner'sauthority
undersubparagraph(A)ofthisparagraphtorequireainsurertosecureandmaintainadepositor
bond, theCommissioner may considerwhether concernsexistwith respecttotheaffiliated
person’sabilitytofulfillthecontractualobligationsor agreementsof theinsurerifthe insurer
weretobeputintoliquidation.“(C)If the insurerisdeemed tobe ina hazardousfinancialconditionor a
conditionthatwouldbegroundsforsupervision,conservation,oradelinquencyproceeding,and
a depositor bond isnecessary,theCommissioner has discretiontodeterminetheamountof the
depositorbond, not toexceed thevalueof thecontractualobligationsor agreementsof the
insurerinanyoneyear,andwhethersuchdepositorbondshouldberequiredforasingle
contract,multiplecontracts,or a contractonly with a specificpersonor persons.
“(2)(A)Allrecordsanddataoftheinsurerheldbyanaffiliateareandremainthe
propertyoftheinsurer,aresubjectto controloftheinsurer,shallbe identifiable,and shallbe
segregatedor readilycapableof segregationatno additionalcosttotheinsurerfrom allother
persons’recordsanddata.Thisincludesallrecordsanddatathatareotherwisethepropertyof
theinsurer,inwhateverform maintained,includingclaimsand claimfiles,policyholderlists,
applicationfiles,litigationfiles,premiumrecords,ratebooks,underwritingmanuals,personnel
records,financialrecordsor similarrecordswithinthepossession,custodyor controlof the
affiliate.
“(B)At therequestofthe insurer,theaffiliateshallprovidethatthe
receivercanobtainacompletesetofallrecordsofanytypethatpertaintotheinsurer’sbusiness,
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ENROLLED ORIGINAL
obtainaccesstotheoperatingsystemsonwhichthedataismaintained,obtainthesoftwarethat
runsthosesystemseitherthroughassumptionoflicensingagreementsorotherwise,andrestrict
theuseofthedatabytheaffiliateifitisnotoperatingtheinsurer’sbusiness.
“(C)Theaffiliateshallprovideawaiverofanylandlordlienorother
encumbrance to givetheinsureraccessto allrecordsand dataintheeventoftheaffiliate’s
defaultunderaleaseorotheragreement.
(3)Premiumsorotherfundsbelongingtotheinsurerthatarecollectedbyorheld
byanaffiliatearetheexclusivepropertyoftheinsurerandshallbesubjecttothecontrolofthe
insurer;anyrightofoffsetintheeventaninsurerisplacedintoreceivershipshallbesubjectto
theInsurersRehabilitationAct of 1993,effectiveOctober 15,1993 (D.C.Law 10-35;D.C.
OfficialCode § 31-1301er seq.).
“(f(1)Any affiliatethatispartytoan agreementor contractwith a domesticinsurerthat
issubjecttosubsection(a)(2)(D)ofthissectionshallbesubjecttothejurisdictionofany
supervision,seizure,conservatorship,orreceivershipproceedingsagainsttheinsurerandtothe
authorityofanysupervisor,conservator,rehabilitatororliquidatorfortheinsurerappointed
pursuanttoDistrictlaw,forthepurposeofinterpreting,enforcing,andoverseeingtheaffiliate’s
obligationsundertheagreementorcontracttoperformservicesfortheinsurerthatare:
“(A) An integralpartof theinsurer’soperations,includingmanagement,
administrative,accounting,dataprocessing,marketing,underwriting,claimshandling,
investment,or any othersimilarfunctions;or
“(B)Essentialtotheinsurer’sabilityto fulfillitsobligationsunder
insurancepolicies.
“(2)TheCommissionermayrequirethatanagreementorcontractforthe
provisionofservicesdescribedinparagraph(1)(A)or(B)ofthissubsectionspecifythatthe
affiliateconsentstothejurisdictionassetforthinparagraph(1)ofthissubsection.”,
(d)Section9 (D.C.OfficialCode § 31-708)isamended as follows:
(1)Subsection(a)isamendedbystrikingthephrase“shallbeconfidential”and
insertingthephrase“arerecognizedbytheDistrictasbeingproprietaryandtocontaintrade
secrets,and shallbe confidential”initsplace.
(2)A newsubsection(a-1)isaddedtoreadasfollows:
“(a-1)Subjecttotheprovisoinsubsection(a)ofthissection,forpurposesofthe
informationreportedandprovidedtotheDepartmentofInsurance,Securities,andBanking
pursuanttosection6(k-2)and(K-3),theCommissionershallmaintaintheconfidentialityof:
“(1)Thegroupcapitalcalculationandgroupcapitalratioproducedwithinthe
calculationandanygroupcapitalinformationreceivedfromaninsuranceholdingcompany
supervisedbytheFederalReserveBoardoranyU.S.group-widesupervisor;and
(2)Theliquiditystresstestresultsandsupportingdisclosuresandanyliquidity
stresstestinformationreceivedfromaninsuranceholdingcompanysupervisedbytheFederal
ReserveBoardandnon-U.S.groupwidesupervisors.”.
(3)Subsection(c)isamendedasfollows:
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ENROLLED ORIGINAL
(A)Paragraph(1)isamendedtoreadasfollows:
“(1)May sharedocuments,materialsor otherinformation,includingthe
confidentialand privilegeddocuments,materials,or informationdescribedatsubsection(a)of
thissection,and which shallincludeproprietaryand tradesecretdocuments and materials,with
otherstate,federal,andinternationalregulatoryagencies,theNAIC,anythird-partyconsultants
designatedby theCommissioner,and state,federal,and internationallaw enforcement
authorities,includingmembersofanysupervisorycollegedescribedinsection8a;provided,that
therecipientagreesinwritingtomaintaintheconfidentialityand privilegedstatusof the
document,material,orotherinformation,andverifiesinwritingthelegalauthoritytomaintain
confidentiality.”,(B)Paragraph(1A)isamendedbystrikingthephrase“section6”and
insertingthephrase“section6(k-1)”initsplace.
(C)Paragraph(2)isamendedbystrikingthephrase“information,from
theNationalAssociationof InsuranceCommissioners” and insertingthephrase“information,
includingproprietaryandtradesecretinformation,fromNAIC”initsplace.
(D)Paragraph(3)isamendedtoreadasfollows:
(3)ShallenterintowrittenagreementswiththeNAICandanythird-party
consultantdesignatedbytheCommissionergoverningthesharinganduseofinformation
providedpursuanttothisactandconsistentwiththissubsection,whichshall:
“(A)SpecifyproceduresandprotocolsregardingtheconfidentialityandsecurityofinformationsharedwiththeNAICorathird-partyconsultantdesignatedbythe
Commissionerpursuanttothisact,includingproceduresandprotocolsforsharingbytheNAIC
withotherstate,federalor internationalregulators.The agreementshallprovidethattherecipient
agreesinwritingtomaintaintheconfidentialityandprivilegedstatusofthedocuments,materials
or otherinformationand has verifiedinwritingthelegalauthoritytomaintainsuch
confidentiality;
“(B) Specifythatownershipof informationsharedwiththeNAIC or a
third-partyconsultantpursuanttothisactremainswiththeCommissionerandtheNAIC’s ora
third-partyconsultant’suseof theinformationissubjecttothedirectionoftheCommissioner;
“(©Excludingdocuments,material,orinformationreportedpursuantto
section6(k-3),prohibittheNAIC or third-partyconsultantdesignatedby theCommissioner ftom
storinginformationsharedpursuanttothisactina permanentdatabaseaftertheunderlying
analysisiscompleted;
“(D)Requirepromptnoticetobegiventoaninsurerthattheinsurer's
confidentialinformationinthepossessionoftheNAICora third-partyconsultantdesignatedby
theCommissionerpursuanttothisactissubjecttoarequestorsubpoenatotheNAIC orathird-
partyconsultantfordisclosureorproduction;
“(B)RequiretheNAIC orathird-partyconsultantdesignatedbythe
Commissioner toconsenttointerventionby an insurerinany judicialor administrativeactionin
which theNAIC or a third-partyconsultantmay be requiredto discloseconfidentialinformation
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ENROLLED ORIGINAL,
abouttheinsurersharedwith theNAIC ora third-partyconsultantand itsaffiliatesand
subsidiariespursuanttothisact;and
“(F)Forreportingofdocuments,material,orinformationpursuantto
section6(k-3),inthecaseofan agreementinvolvingathird-partyconsultantdesignatedbythe
Commissioner,providefornotificationoftheidentityoftheconsultanttotheapplicable
insurers.”,
(4)Subsection(4-1)isamendedbystrikingtheabbreviation“NAIC”and
insertingthephrase“NAIC,orathird-partyconsultantdesignatedbytheCommissioner”inits
place.
(5)Anew subsection(d-2)isaddedtoreadasfollows:
“(d-2)Exceptasotherwiserequiredunderthisact,noinsurer,broker,orotherperson
engagedinanymannerintheinsurancebusinessmaymake,publish,disseminate,circulateor
placebeforethepublic,or causedirectlyor indirectlytobe made, published,disseminated,
circulatedorplacedbeforethepublicinanewspaper,magazineorotherpublication,orinthe
form ofanotice, circular,pamphlet,letterorposter,or overany radioor televisionstationor any
electronicmeansofcommunicationavailabletothepublic,orinanyotherwayasan
advertisement,announcement,or statementcontaininga representationor statement,withregard.
tothegroupcapitalcalculation,groupcapitalratio,theliquiditystresstestresults,orsupporting
disclosuresfortheliquiditystresstestofany insureroranyinsurergroup,orofanycomponent
derivedinthecalculation;provided,thatifany materiallyfalsestatementwithrespecttothe
groupcapitalcalculation,resultinggroupcapitalratio,afalseormisleadingcomparisonofany
amounttoaninsurer’sorinsurancegroup’sgroupcapitalcalculationorresultinggroupcapital
ratio,liquiditystresstestresult,supportingdisclosuresfortheliquiditystresstest,orafalseor
misleadingcomparisonofanyamounttoan insurer’sorinsurancegroup'sliquiditystresstest
resultorsupportingdisclosuresispublishedinanywrittenpublicationandtheinsurerisableto
demonstratetotheCommissioner with substantialproofthefalsityof such statementor itsfalse
ormisleadingnatureasthecasemaybe,thentheinsurermaypublishannouncementsina
writtenpublicationifthesolepurposeofthe announcement istorebutthemateriallyfalseor
misleadingstatement.”.
Sec.3.Fiscalimpactstatement.
‘TheCounciladoptsthefiscalimpactstatementinthecommitteereportasthefiscalimpactstatementrequiredbysection4aoftheGeneralLegislativeProceduresActof1975,approvedOctober16,2006(120Stat.2038;D.C,OfficialCode§1-301.47a).
Sec.4.Effectivedate.ThisactshalltakeeffectfollowingapprovalbytheMayor(orintheeventofvetobytheMayor,actionbytheCouneiltooverridetheveto)anda30-dayperiodofcongressionalreview
ENROLLED ORIGINAL
as providedinsection602(c)(1)ofthe Districtof Columbia Home Rule Act,approved December
24, 1973 (87 Stat.813; D.C. OfficialCode § 1-206.02(c)(1)).
1 Ye —airman
Councilofthe Districtof Columbia.

Districtof Columbia
APPROVEDAPRIL 22, 2026

DocketNo,826-0426
[X]ITEMONCONSENTCALENDAR
[gaction
DTVOTEDATE
[avoicevoTE
RECORDEDVOTEONREQUEST
ABSENT
[]ROLLCALLVOTE—Result
COUNCILOF THEDISTRICTOF COLUMBIA
WASHINGTON,DC,20004
FirstReading,CC
March3,2026
‘Approved

[CouncMember [Aye[NayNV [AB[Rec|CounctMember{aye|Nay|NV_[AB_|Reo|CouncliMember|Aye|NayNV [AB|Ree
ChairmanMendetson|X Frain x Pinto
‘Allen x Henderson x R.White
Bonds x LewisGeorge_| x T.White
Crawfors x Nadeau x
Felder x Parker x
X-indicateVote ‘AB~Absent NV-Preset,NotVoting “Rec-Recused
CERTIFICATIONRECORD
SeoretarytothdCounc Date
DocketNo,B26-0426
[X]ITEMONCONSENTCALENDAR
[XJACTION FinalReading,CC
(X]VOTEDATE March31,2026
[x]VOICEVoTE ‘Approved
RECORDEDVOTEONREQUEST
ABSENT
[ROLLCALLVOTE-Resutt
‘CouncilMember| Aye[Nay[NV[AB[Ree[CouncilMember[Aye[Nay|NV[a8[Rec!CouncilMember.[Aye|Nay|NV.[AB[Rec
ChairmanMendelson]X Framin x Pinto
Allen x Henderson x White
Bonds x LewisGeorge| x White
Crawford x Nadeau x
Folder x Parker x
X-IndicateVote- AB Absent NV.Pregent,NotVoting- “Rec Recused
CERTIFICATIONRECORD
oS ie ee 4-77-26Date