District of ColumbiaB26-0426Council Period 26 (2025-2026)HouseWALLET

Holding Company System Amendment Act of 2025

Sponsored By: Phil Mendelson (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 1 costs, 3 mixed.

Deposits or bonds for troubled insurers

The Commissioner can require an insurer in a hazardous condition, or one that would warrant supervision, conservation, or delinquency, to post a deposit with the Commissioner or a bond. The amount can be limited to certain contracts or people, must consider affiliates’ ability to perform, and cannot exceed the value of contractual obligations in any one year. The requirement lasts for the contract term or while the hazardous condition continues.

Insurers keep control of data and funds

Affiliates must keep insurer records and data identifiable and segregated at no extra cost. On request, an affiliate must give a receiver complete records and access to systems and software, and must waive landlord liens that block access if it defaults. Premiums and other insurer funds held by an affiliate stay the insurer’s property, with offsets governed by the Insurers Rehabilitation Act of 1993. Affiliates that provide key services must submit to the regulator’s and court’s jurisdiction in any supervision or receivership, and contracts may need express consent language.

New capital and liquidity filings for insurers

The law requires the ultimate controlling person to file a yearly group capital calculation with the lead state commissioner, using national instructions. Exemptions cover: a single domestic insurer that assumes no other insurers’ business; groups doing a Federal Reserve group capital calculation that is shared on request; groups with a non‑U.S. supervisor in a reciprocal jurisdiction that recognizes U.S. group supervision and capital; and groups that supply information meeting national accreditation or whose non‑U.S. supervisor accepts the group capital calculation as a worldwide test. The lead commissioner can still require a filing or accept a limited filing, and can extend deadlines when an exemption ends. If an insurer is scoped into the NAIC liquidity stress test, the ultimate controlling person must file that year’s results; changes to the framework or data‑year scope take effect on January 1 of the year after adoption. For these assessments, transactions that are 0.5% or less of admitted assets as of December 31 are treated as material.

Stronger confidentiality for insurer group tests

Materials insurers submit, including group capital calculations, ratios, and liquidity stress test results, are proprietary trade secrets and are kept confidential, including information from federal and non‑U.S. supervisors. The Commissioner may share them with other regulators, the NAIC, third‑party consultants, or law enforcement only under written agreements that keep them confidential, limit permanent database storage, and require prompt notice to insurers of subpoenas and allow insurer intervention. Insurers, brokers, and others cannot publish or advertise these metrics; a narrow written rebuttal is allowed to correct a materially false written statement with substantial proof to the Commissioner.

Sponsors & Cosponsors

Sponsor

Phil Mendelson
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 26 • No: 0

House vote • 3/31/2026

Final Reading, CC

Yes: 13 • No: 0

House vote • 3/3/2026

First Reading, CC