Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Section 1104.47 - Credit for Reinsurance - Reciprocal Jurisdictions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Pursuant to Section 173.1(1)(C-10) of the
			 Code, the Director shall allow credit for reinsurance ceded by a domestic
			 insurer to an assuming insurer that is licensed to write reinsurance by, and
			 has its head office or is domiciled in, a Reciprocal Jurisdiction, and which
			 meets the other requirements of this Part.
b) A "Reciprocal Jurisdiction" means a
			 jurisdiction, as designated by the Director pursuant to subsection (c), that
			 meets one of the following:
1) A non-U.S.
			 jurisdiction that is subject to an in-force covered agreement with the United
			 States, each within its legal authority, or, in the case of a covered agreement
			 between the United States and the European Union, is a member state of the
			 European Union;
2) A U.S.
			 jurisdiction that meets the requirements for accreditation under the NAIC
			 financial standards and accreditation program; or
3) A qualified jurisdiction, as determined by
			 the Director pursuant to Section 173.1(1)(C-5)(3) of the Code, which is not
			 otherwise described in either subsection (b)(1) or (2) and which the Director
			 determines meets all of the following additional requirements:
A) Provides that an insurer which has its
			 head office or is domiciled in such qualified jurisdiction shall receive credit
			 for reinsurance ceded to a U.S.-domiciled assuming insurer in the same manner
			 as credit for reinsurance is received for reinsurance assumed by insurers
			 domiciled in such qualified jurisdiction;
B) Does not require a U.S.-domiciled assuming
			 insurer to establish or maintain a local presence as a condition for entering
			 into a reinsurance agreement with any ceding insurer subject to regulation by
			 the non-U.S. jurisdiction or as a condition to allow the ceding insurer to
			 recognize credit for such reinsurance;
C) Recognizes the U.S. state regulatory
			 approach to group supervision and group capital, by providing written
			 confirmation by a competent regulatory authority, in such qualified
			 jurisdiction, that insurers and insurance groups that are domiciled or maintain
			 their headquarters in Illinois or another jurisdiction accredited by the NAIC
			 shall be subject only to worldwide prudential insurance group supervision
			 including worldwide group governance, solvency and capital, and reporting, as
			 applicable, by the Director or the commissioner of the domiciliary state and
			 will not be subject to group supervision at the level of the worldwide parent
			 undertaking of the insurance or reinsurance group by the qualified
			 jurisdiction; and
D) Provides
			 written confirmation by a competent regulatory authority in such qualified
			 jurisdiction that information regarding insurers and their parent, subsidiary,
			 or affiliated entities, if applicable, shall be provided to the Director in
			 accordance with a memorandum of understanding or similar document between the
			 Director and such qualified jurisdiction, including but not limited to the
			 International Association of Insurance Supervisors Multilateral Memorandum of
			 Understanding or other multilateral memoranda of understanding coordinated by
			 the NAIC.