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Committee hears bill to implement NAIC accreditation changes, require group capital calculations and liquidity stress tests
Summary
On May 1 the House Committee on Commerce heard from the Division of Financial Regulation and industry witnesses on Senate Bill 831 A, which would adopt NAIC accreditation standards and require group capital calculations and liquidity stress testing for certain insurance groups.
On May 1 the House Committee on Commerce heard from the Oregon Division of Financial Regulation and industry witnesses about Senate Bill 831 A, an agency bill that would adopt revisions to accreditation standards from the National Association of Insurance Commissioners and add tools for group solvency supervision.
T.K. Keane, administrator with the Division of Financial Regulation, described NAIC accreditation as the foundation for state‑based insurance regulation and said accreditation avoids duplicative examinations of insurers by other states. Lily Soblik, senior policy advisor, told the committee the bill’s two principal technical provisions are a group capital calculation — which helps regulators quantify risk across an insurance holding company — and a liquidity stress test, which gauges potential market‑wide effects from large‑scale liquidity stresses.
Soblik said the standards must be adopted by Jan. 1, 2026, for Oregon to maintain NAIC accreditation and that 35 jurisdictions had already adopted the standards. “The group capital calculation tool helps regulators better understand potential financial risks to an insurance company from other non‑regulated entities within the holding company,” she said; she added the liquidity stress test provides evidence‑based analyses of potential macroprudential impacts.
Ryan Cifo, director of government regulatory affairs for Standard Insurance Company, testified in support and said the measures would strengthen solvency oversight while not imposing an unduly onerous burden on large domestic insurers. Cifo said maintaining NAIC accreditation is important because, without it, Oregon‑headquartered insurers could face examinations by multiple states at their own expense.
Committee members asked about rulemaking timelines; staff said the bill allows rulemaking ahead of the Jan. 1, 2026 deadline. The committee did not take a vote during the public hearing.
