Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-78 - CREDIT FOR REINSURANCE › Rule 120-2-78-.09 - Credit for Reinsurance - Reciprocal Jurisdictions

Current through Rules and Regulations filed through June 27, 2024
(1) Pursuant to O.C.G.A. §
									33-7-14(a)(6),
				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 regulation.
(2) A "Reciprocal Jurisdiction" is a
				jurisdiction, as designated by the commissioner pursuant to
				120-2-78-.09(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 subsection, 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; or
(c) A
				qualified jurisdiction, as determined by the commissioner pursuant to O.C.G.A.
				§
										33-7-14(a)(5)(C) 
				and 120-2-78-.08(3),
				which is not otherwise described in Paragraph (a) or (b) above 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 supervisions at the level of the worldwide
				parent undertaking of the insurance or reinsurance group by the qualified
				jurisdiction; and
(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.