Insurance Holding Company Systems with Reporting Forms and Instructions, 23 CAR pt. 9

This amendment to our Holding Company System Rule (previously Rule 15) is a National Association of Insurance Commissioners (“NAIC”) model regulation. The companion NAIC model law was passed during this year’s General Assembly as Act 261. The law and the regulation work together to establish new tools for financial regulation of insurers that are part of a holding company system. The models require the filing of a group capital calculation by the ultimate controlling person in a holding company group with the lead state’s commissioner. There are exceptions for smaller, single-state companies, and holding company systems that are required by the Board of Governors of Federal Reserve System to file a group capital calculation. These models also establish the requirement of a liquidity stress test if the holding company system meets the criteria, which is reviewed annually by the NAIC’s Financial Stability Task Force. This model regulation also provides direction for how to proceed when an insurer in the holding company system is placed in supervision, seizure, conservatorship, or receivership. Both the model law, now Act 261 of 2025, and the model regulation will become national accreditation standards on January 1, 2026. This amendment provides guidance and instruction to insurers on how to comply with the new regulatory tools established in Act 261, which will allow more effective regulatory oversight. The Department must promulgate this proposed amended Rule in order to maintain its national accreditation with the NAIC along with all other states.

A public hearing was held on December 8, 2025. The public comment period expired on December 8, 2025. The department indicated it received no public comments. Isaac Linam, an attorney with the Bureau of Legislative Research, asked the following question: QUESTION: In 23 CAR § 9-118(b)(13)(B), the rule currently reads, “unleased released by the receiver”. Should the term “unleased” instead be “unless”? RESPONSE: Yes, it should be “unless”. [The agency made this change in the rule draft.]

• Rule packet: B.1.a DOC SID Insurance Holding Company Systems with Reporting Forms and Instructions and Acts 2025%2C No 261
• ALC summary agenda Jan 15, 2026
• ALC agenda Jan 15, 2026
• ALC meeting video Jan 15, 2026
• Arkansas Register, February 2026