(1)If an insurance holding company system under section 41-3809 (13), Idaho Code, has previously filed the annual group capital calculation at least once, the lead state director may exempt the ultimate controlling person from filing the annual group capital calculation if:
(a)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, are less than one billion dollars ($1,000,000,000);
(b)No insurers within the holding company structure are domiciled outside of the United States or one (1) of its territories;
(c)No banking, depository, or other financial entity that is subject to an identified regulatory capital framework is within th
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(1) If an insurance holding company system under section 41-3809 (13), Idaho Code, has previously filed the annual group capital calculation at least once, the lead state director may exempt the ultimate controlling person from filing the annual group capital calculation if:
(a) 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, are less than one billion dollars ($1,000,000,000);
(b) No insurers within the holding company structure are domiciled outside of the United States or one (1) of its territories;
(c) No banking, depository, or other financial entity that is subject to an identified regulatory capital framework is within the holding company structure;
(d) The holding company system attests that there are no material changes in the transactions between insurers and non-insurers in the group that have occurred since the last filing of the annual group capital calculation; and
(e) The non-insurers within the holding company system do not pose a material financial risk to the insurer’s ability to honor policyholder obligations.
(2) If an insurance holding company system has previously filed the annual group capital calculation, the lead state director may accept, in lieu of the group capital calculation, a limited group capital filing 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:
(a) No insurers within the holding company structure are domiciled outside of the United States or one (1) of its territories;
(b) No banking, depository, or other financial entity that is subject to an identified regulatory capital framework is included; and
(c) The 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 the report and the non-insurers within the holding company system do not pose a material financial risk to the insurer’s ability to honor policyholder obligations.
(3) No exemption under this section may prevent the lead state director from requiring the ultimate controlling person to file an annual group capital calculation, at any time, if:
(a) Any insurer within the insurance holding company system is in a risk-based capital action level event as set forth in chapter 54, title 41, Idaho Code, or a similar standard for a non-United States insurer;
(b) Any insurer within the insurance holding company system meets one (1) or more of the standards of an insurer deemed to be in hazardous financial condition as set forth in rule; or
(c) Any insurer within the insurance holding company system otherwise exhibits qualities deemed hazardous to the insurance buying public based on unique circumstances, including but not limited to the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests.
(4) A non-United States jurisdiction is considered to recognize and accept the group capital calculation when:
(a) With respect to section 41-3809 (13), Idaho Code:
(i) The non-United States jurisdiction recognizes the United States state regulatory approach to group supervision and group capital by providing confirmation that insurers and insurance groups whose lead state is accredited by the NAIC under the NAIC accreditation program shall be subject only to worldwide prudential insurance group supervision, including worldwide group governance, solvency and capital, and reporting, as applicable, by the lead state; or
(ii) There are no United States insurance groups operating in a non-United States jurisdiction and such non-United States jurisdiction indicates formally in writing to the lead state, with a copy forwarded to the international association of insurance supervisors, that the group capital calculation is an acceptable international capital standard; and
(b) The non-United States jurisdiction provides confirmation that information regarding insurers and their parents, subsidiaries, or affiliated entities, if applicable, shall be provided to the lead state in accordance with a memorandum of understanding or similar document between the director and such jurisdiction, including but not limited to the international association of insurance supervisors multilateral memorandum of understanding or other multilateral memoranda of understanding.
(5)(a) The list of jurisdictions that recognize and accept the group capital calculation, an NAIC publication adopted and amended by the NAIC effective August 13, 2022, or any subsequent version adopted for use by the director by rule, administrative order, or bulletin, shall be the list of non-United States jurisdictions that recognize and accept the group capital calculation.
(b) The list shall assist the lead state director in determining which insurers shall file an annual group capital calculation. The list shall clarify those situations in which a jurisdiction is exempted from filing pursuant to section 41-3809 (13)(a)(iv), Idaho Code. To assist with a determination under section 41-3809 (13)(b), Idaho Code, the list shall also identify whether a jurisdiction that is exempted pursuant to section 41-3809 (13)(a)(iii) or (iv), Idaho Code, requires a group capital filing for any United States-based insurance group’s operations in such non-United States jurisdiction.
(c) If a non-United States jurisdiction no longer meets the requirements to recognize and accept the group capital calculation, the director may exclude the jurisdiction from the list of jurisdictions that recognize and accept the group capital calculation.