Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-156 - CREDIT FOR REINSURANCE › Section 482-1-156-.08.1 - Credit For Reinsurance - Reciprocal Jurisdictions

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Pursuant to Section
			 27-5B-8.1, as added to the
Code of Ala. 1975
by Alabama Act No. 2021-235, the
			 commissioner 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 chapter.
(2) A
			 "Reciprocal Jurisdiction" is a jurisdiction, as designated by the commissioner
			 pursuant to paragraph (4), that meets one of the following:
(a) 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. For purposes of
			 this paragraph (2), a "covered agreement" is an agreement entered into pursuant
			 to the Dodd-Frank Wall Street Reform and Consumer Protection Act,
			 31 U.S.C. §§
										313 and
			 314, that is
			 currently in effect or in a period of provisional application and addresses the
			 elimination, under specified conditions, of collateral requirements as a
			 condition for entering into any reinsurance agreement with a ceding insurer
			 domiciled in this state or for allowing the ceding insurer to recognize credit
			 for reinsurance.
(b) A U.S.
			 jurisdiction that meets the requirements for accreditation under the NAIC
			 financial standards and accreditation program.
(c) A qualified jurisdiction, as determined
			 by the commissioner pursuant to subsection (c) of Section
			 27-5B-8 and paragraph (3) of Rule
			 482-1-156-.08, which is not
			 otherwise described in subparagraph (a) or (b) and which the commissioner
			 determines meets all of the following additional requirements:
1. 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.
2. 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.
3. 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 this state 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 commissioner 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.
4. 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 commissioner in accordance
			 with a memorandum of understanding or similar document between the commissioner
			 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.