158 
governing the advertising, sale, issuance, distribution, and 
administration of insurance policies and other products of 
National Insurers and claims under insurance policies and 
other products of National Insurers. 
Subtitle C—Reinsurance 
SEC. 221. FEDERAL LICENSING OF REINSURERS. 
(a) AUTHORITY TO LICENSE.— 
(1) IN GENERAL.—The Commissioner may— 
(A) license insurers that are not National 
Insurers to provide reinsurance; and 
(B) prescribe, by regulation, the standards 
and procedures for granting such licenses. 
(2) CRITERIA.—The standards prescribed under 
paragraph (1)(B) shall give due consideration to— 
(A) the public interest in providing secure 
and sufficient reinsurance capacity in the 
United States; and 
(B) the need for promoting fair and effec-
tive competition. 
(b) DETERMINATION AND FINDING; ISSUANCE OF LI-
CENSE.— 
(1) EXAMINATION AND INVESTIGATION.—Upon 
the receipt of an application for a license under this 
section, the Commissioner shall examine the infor-
mation submitted by the applicant and may conduct 
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further examinations and investigations, as nec-
essary, to determine whether the applicant satisfies 
the standards for a license under this section. 
(2) PUBLICATION OF FINDINGS.—The Commis-
sioner shall publish the Commissioner’s findings and 
determination under paragraph (1). 
(3) ISSUANCE OF FEDERAL LICENSE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), if the Commissioner deter-
mines that the applicant has satisfied the appli-
cable requirements of this section, the Commis-
sioner shall issue a Federal license to provide 
reinsurance. 
(B) 
RESTRICTION.—The 
Commissioner 
shall not issue a Federal license for reinsurance 
until after the Commissioner is authorized to 
charter and license a National Insurer pursuant 
to section 210. 
(c) MINIMUM STANDARDS FOR LICENSING OF NON- 
UNITED STATES INSURERS.—The Commissioner shall not 
issue a license under this section to any insurer that is 
not a State insurer or a United States branch of a non- 
United States insurer unless the insurer agrees to— 
(1) subject its financial statements to the Com-
missioner for review and audit on a basis that the 
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Commissioner determines to be substantially similar 
to that required of National Insurers under section 
124; 
(2) submit to the jurisdiction of Federal, State, 
and local courts in the United States, which shall 
not constitute a waiver of the insurer’s right to re-
move an action to a United States Federal Court or 
to seek a transfer of a case to another court as per-
mitted by the laws of the United States or of any 
State; and 
(3) demonstrate that all judgments of all 
United States courts would be enforceable and col-
lectible by— 
(A) being organized or incorporated in a 
jurisdiction— 
(i) with which the United States has 
entered into a treaty on the recognition 
and enforcement of judgments rendered by 
Federal, State, and local courts in the 
United States; or 
(ii) which is a signatory to the United 
Nations Convention on the Recognition 
and Enforcement of Foreign Arbitral 
Awards, and agreeing to include in the re-
insurance contract a clause that is satisfac-
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tory to the Commissioner requiring that all 
disputes arising out of the interpretation of 
the reinsurance contract be submitted to 
arbitration; or 
(B) agreeing to post prejudgment security 
in the United States upon the commencement 
of any litigation or arbitration in the United 
States, subject to such regulations as the Com-
missioner may prescribe. 
(d) REVOCATION OF LICENSE.— 
(1) IN GENERAL.—The Commissioner may re-
voke, suspend, or restrict a Federal reinsurer’s li-
cense in accordance with subtitle C of title I. 
(2) STATUS OF FEDERALLY LICENSED REIN-
SURER.—For purposes of this subsection, a federally 
licensed reinsurer shall be deemed to be a National 
Insurer under subtitle C of title I. 
(e) ANNUAL REPORTS.—The Commissioner shall re-
quire each reinsurer licensed under this section to submit 
an annual report of its financial condition. 
SEC. 222. CREDIT FOR REINSURANCE. 
(a) CREDIT FOR REINSURANCE CEDED TO A NA-
TIONAL INSURER
OR
A FEDERALLY LICENSED REIN-
SURER.—A National Insurer may establish an asset or re-
duce its liabilities, to the extent of such liabilities, for rein-
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surance ceded to another National Insurer or a federally 
licensed reinsurer. 
(b) OTHER ASSET OR REDUCTION FROM LIABILITY 
FOR REINSURANCE CEDED.—A National Insurer may es-
tablish an asset or reduce its liabilities, to the extent of 
such liabilities, for reinsurance— 
(1) that is ceded to— 
(A) a State insurer; 
(B) a United States branch entered 
through a State; or 
(C) a non-United States insurer; and 
(2) if such reinsurance is secured consistent 
with the regulation issued by the Commissioner pur-
suant to subsection (c). 
(c) REGULATION.—The Commissioner shall establish, 
by regulation, security standards governing the ceding of 
insurance by a National Insurer to any of the entities list-
ed in subsection (b)(1) in order to protect the policy-
holders of a National Insurer, which standards shall not 
be applied in a discriminatory manner with respect to any 
such entity. 
(d) ANNUAL REPORTS.—As a condition of the asset 
or reduction of liabilities treatment, the Commissioner 
may require any entity listed in subsection (b)(1) to sub-
mit an annual report on the condition of any trust fund 
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