Connecticut Administrative Code › Title 38a - Insurance Department › 88 - Credit for Reinsurance › Section 38a-88-4b - Credit for Reinsurance - Reciprocal Jurisdictions

Current through July 10, 2024
(a) 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 assuming
			 insurer meets other requirements of this section.
(b) For the purposes of this section, a
			 "reciprocal jurisdiction" is a jurisdiction, as designated by the Commissioner
			 pursuant to subsection (d) of this section, that meets one of the following:
(1) For the purposes of this section, a
			 non-United States 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 European Union, is a member
			 state of the European Union. For purposes of this subsection, a "covered
			 agreement" is an agreement entered into pursuant to the Dodd-Frank Wall Street
			 Reform and Consumer Protection Act,
			 31 USC
			 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;
(2) A United
			 States jurisdiction that meets the requirements for accreditation under the
			 NAIC financial standards and accreditation program; or
(3) A qualified jurisdiction, as determined
			 by the Commissioner pursuant to section 38a-85a(c) of the Connecticut General
			 Statutes or section
			 38a-88-4
			 a(c) of the Regulations of Connecticut State Agencies, which is not otherwise
			 described in subdivision (1) or (2) of this subsection and which the
			 Commissioner 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 United States-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 United
			 States-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 a regulation by the non-United States jurisdiction or as a condition
			 to allow the ceding insurer to recognize credit for such reinsurance;
(C) Recognizes the United States 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 of 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 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.