§ 1604. Registration. (a) An authorized domestic insurer shall
register with the superintendent within thirty days of becoming subject
to registration and shall amend the registration within thirty days
following any material change to the information provided in the
registration. The registration shall be in such form and shall contain
such matters as the superintendent prescribes. The superintendent may
grant reasonable extensions of the time to register.

(b)(1) An authorized domestic insurer, other than a domestic insurer
required to register as a controlled insurer pursuant to section one
thousand five hundred three of this chapter, shall adopt a formal
enterprise risk management function and shall file an enterprise risk
report with the superintendent by April thirtieth of each year. The
report shall, to the best of the insurer's knowledge and belief,
identify the material risks within any subsidiary that could pose
enterprise risk to the insurer.

(2) For the purposes of this article, "enterprise risk" means any
activity, circumstance, event, or series of events involving one or more
subsidiaries of an insurer that, if not remedied promptly, is likely to
have a material adverse effect upon the financial condition or liquidity
of the insurer, including anything that would cause the insurer's
risk-based capital to fall into company action level as set forth in
section one thousand three hundred twenty-four of this chapter, or that
would cause further transaction of business to be hazardous to the
insurer's policyholders or creditors or the public.

(c) (1) An authorized domestic insurer, other than a domestic insurer
required to register as a controlled insurer pursuant to section one
thousand five hundred three of this chapter, shall file with the
superintendent an annual group capital calculation by June thirtieth of
each year when this state is the lead state as determined in accordance
with the procedures within the financial analysis handbook adopted by
the NAIC, as amended from time to time.

(2) When the lead state is not this state, an authorized domestic
insurer shall file with the superintendent the annual group capital
calculation as adopted by its lead state if the authorized domestic
insurer has filed the annual group capital calculation with the lead
state but the lead state is not willing or able to share the annual
group capital calculation with the superintendent.

(3) When this state is the lead state, the authorized domestic insurer
shall complete the annual group capital calculation in accordance with
the group capital calculation instructions, which may permit the
superintendent to allow a subsidiary to file the annual group capital
calculation.

(4) When this state is the lead state, an authorized domestic insurer
shall be exempt from filing an annual group capital calculation if it:

(A) has only one insurer subsidiary that only writes business and is
only licensed in its domestic state and assumes no business from any
other insurer;

(B) is required to perform a group capital calculation specified by
the United States Federal Reserve Board, except that the authorized
domestic insurer shall not be exempt if the superintendent requests the
group capital calculation from the United States Federal Reserve Board
under the terms of information sharing agreements in effect and the
Federal Reserve Board cannot share the calculation with the
superintendent;

(C) has a non-United States group-wide supervisor that is located
within a reciprocal jurisdiction, as described in part one hundred
twenty-five of title eleven of the official compilation of codes, rules
and regulations of this state, that recognizes the United States state
regulatory approach to group supervision and group capital; or

(D)(i) provides information to the superintendent, either directly or
indirectly through the group-wide supervisor, who has determined such
information is satisfactory to allow the superintendent to comply with
the NAIC group supervision approach, as detailed in the NAIC financial
analysis handbook; and

(ii) has a non-United States group-wide supervisor that is not in a
reciprocal jurisdiction and that recognizes and accepts, as specified by
the superintendent in a regulation, the group capital calculation as the
world-wide group capital assessment for United States systems that
operate in that jurisdiction.

(5) Notwithstanding subparagraphs (C) and (D) of paragraph four of
this subsection, when this state is the lead state, the superintendent
shall require the group capital calculation for United States operations
of any non-United States-based system where, after any necessary
consultation with other supervisors or officials, it is deemed
appropriate by the superintendent for prudential oversight and solvency
monitoring purposes or for ensuring the competitiveness of the insurance
marketplace.

(6) Notwithstanding the exemptions from filing the group capital
calculation set forth in paragraph four of this subsection, when this
state is the lead state, the superintendent has the discretion to exempt
an authorized domestic insurer from filing an annual group capital
calculation or accept a limited annual group capital calculation filing
or report in accordance with criteria as specified by the superintendent
in a regulation.

(7) When this state is the lead state, if the superintendent
determines that an authorized domestic insurer no longer meets one or
more of the requirements for an exemption from filing the group capital
calculation under this subsection, the authorized domestic insurer shall
file the group capital calculation at the next annual filing date unless
given an extension by the superintendent based on reasonable grounds
shown.

(d)(1) An authorized domestic insurer, other than a domestic insurer
required to register as a controlled insurer pursuant to section one
thousand five hundred three of this chapter, that has a subsidiary that
is scoped into the NAIC liquidity stress test framework shall file the
results of a specific year's annual liquidity stress test with the
superintendent when this state is the lead state as determined by the
procedures within the financial analysis handbook adopted by the NAIC
and as amended from time to time.

(2) When the lead state is not this state, an authorized domestic
insurer shall file with the superintendent the results of a specific
year's liquidity stress test as adopted by its lead state if the
authorized domestic insurer has filed the results with the lead state
but the lead state is not willing or able to share the results with the
superintendent.

(3) When this state is the lead state, the performance of, and filing
of the results from, a specific year's liquidity stress test shall
comply with the NAIC liquidity stress test framework.

(4) When this state is the lead state, any change to the NAIC
liquidity stress test framework or to the data year for which the scope
criteria are to be measured shall be effective on January first of the
year following the calendar year when such changes are adopted.

(5) When this state is the lead state, an insurer meeting at least one
threshold of the scope criteria shall be considered scoped into the NAIC
liquidity stress test framework for the specified data year unless the
superintendent, in consultation with the NAIC financial stability task
force, or its successor, determines the insurer shall not be scoped into
the NAIC liquidity stress test framework for that data year.

(6) When this state is the lead state, an insurer that does not
trigger at least one threshold of the scope criteria shall be considered
scoped out of the NAIC liquidity stress test framework for the specified
data year, unless the superintendent, in consultation with the NAIC
financial stability task force, or its successor, determines the insurer
shall be scoped into the NAIC liquidity stress test framework for that
data year.

(7) The superintendent, in consultation with the NAIC financial
stability task force, or its successor, shall assess the concern of
wishing to avoid having insurers scoped in and out of the NAIC liquidity
stress test framework on a frequent basis as part of the determination
for an insurer.

(e) No insurer, insurance producer, or other person shall make,
publish, disseminate, circulate, issue, or place before the public, or
cause directly or indirectly to be made, published, disseminated,
circulated, issued, or placed before the public, in this state, in a
newspaper, magazine, or other publication, or in the form of a notice,
circular, pamphlet, letter, or poster, or over any radio or television
station or any electronic means of communication available to the
public, or in any other way as an advertisement, announcement, or
statement containing a representation or statement with regard to the
group capital calculation, group capital ratio, liquidity stress test
results, or supporting disclosures for such test, or any component
derived in the calculation thereof, of any authorized domestic insurer
or subsidiary thereof, provided, however, that an insurer may publish,
with the superintendent's prior approval, announcements in a written
publication to rebut any materially false statement with respect to the
foregoing if the insurer is able to demonstrate to the superintendent
with substantial proof the falsity of such statement or the
inappropriateness, as the case may be, and if the sole purpose of the
announcement is to rebut the materially false statement.

(f) For the purpose of this section:

(1) "Group capital calculation instructions" means the group capital
calculation instructions as adopted by the NAIC and as amended by the
NAIC from time to time in accordance with the procedures adopted by the
NAIC, except where such instructions conflict with the laws of this
state and subject to exceptions the superintendent may take in a
regulation upon a written finding that the exceptions would not be
unduly burdensome on the domestic insurer or subsidiary.

(2) "NAIC" means the National Association of Insurance Commissioners.

(3) "NAIC liquidity stress test framework" means an NAIC publication
that includes a history of the NAIC's development of regulatory
liquidity stress testing, the scope criteria applicable for a specific
data year, and the liquidity stress test instructions and reporting
templates for a specific data year, such scope criteria, instructions
and reporting template being as adopted by the NAIC and as amended by
the NAIC from time to time in accordance with the procedures adopted by
the NAIC, except where such publication conflicts with the laws of this
state and subject to exceptions the superintendent may take in a
regulation upon a written finding that the exceptions would not be
unduly burdensome on the domestic insurer or subsidiary.

(4) "Scope criteria" means the designated exposure bases along with
minimum magnitudes thereof for the specified data year, used to
establish a preliminary list of insurers considered scoped into the NAIC
liquidity stress test framework for that data year.