40 P.S. § 991.1404a Group Capital Calculation Exemptions.

• Library: Pennsylvania Statutes
• Edition: 2023
• Currency: Current through P.A. Acts 2023-27
• Year: 2023
• Citation: 40 P.S. § 991.1404a

(a) The commissioner, as the lead state regulator, has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation where the insurance holding company system meets all of the following criteria:

(1) 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 one billion dollars ($1,000,000,000).

(2) Has no insurers within the insurance holding company system that are domiciled outside of the United States or one of its territories.

(3) Has no banking, depository or other financial entity that is subject to an identified regulatory capital framework within the insurance holding company system.

(4) Attests that there have been no material changes in the transactions between insurers and noninsurers in the insurance holding company system during the last year.

(5) The noninsurers within the insurance holding company system do not pose a material financial risk to the insurer's ability to honor policyholder obligations.

(b) The commissioner, as the lead state regulator, has the discretion to accept a limited group capital filing in lieu of the group capital calculation if the insurance holding company system has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than one billion dollars ($1,000,000,000) and all of the following criteria are met:

(1) The insurance holding company system has no insurers that are domiciled outside of the United States or one of its territories.

(2) The insurance holding company system does not include a banking, depository or other financial entity that is subject to an identified regulatory capital framework.

(3) The insurance holding company system attests that there have been no material changes in transactions between insurers and noninsurers in the group during the last year and the noninsurers within the insurance holding company system do not pose a material financial risk to the insurer's ability to honor policyholder obligations.

(c) For an insurance holding company system that has previously met an exemption with respect to the group capital calculation under subsections (a) and (b), the commissioner may at any time require, as the lead state regulator, the ultimate controlling person to file an annual group capital calculation, completed in accordance with the NAIC group capital calculation instructions if any of the following criteria are met: