§ 58-19-27. Liquidity stress test.

275 words·~1 min read·/nc/chapter-58/58-19-27

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(a)Participation and Reporting Requirement. - The ultimate controlling person of every insurer subject to registration pursuant to G.S. 58-19-25 shall 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 either of the following applies:

(1)The insurer meets the scope criteria of that data year's NAIC liquidity stress test framework.

(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. In making this determination, the lead state commissioner shall attempt to avoid the frequent inclusion or exclusion of insurers.

(b)[Form of Report. -] The performance of, and filing of the results from, a specific year's liquidity stress test shall comply with

(i)the NAIC liquidity stress test framework's instructions and reporting templates for that year and

(ii)all lead state commissioners' directives issued in consultation with the NAIC Financial Stability Task Force or its successor.

(c)Exemptions. - The lead state commissioner may, in consultation with the NAIC Financial Stability Task Force or its successor, exempt an ultimate controlling person from the reporting requirements of subsection

(a)of this section. The lead state commissioner shall consider the intent of regulators to avoid having insurers scoped in and out of the NAIC liquidity stress test framework on a frequent basis when making this determination. (2025-45, s. 3(a).)