Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 168 - CREDIT FOR REINSURANCE › Section 16-168-7.1 - Credit for reinsurance; reciprocal jurisdictions

Current through June, 2024
(a) Pursuant
			 to section
			 431:4A-101(f),
			 HRS, 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.
(b) A "reciprocal jurisdiction" is a
			 jurisdiction, as designated by the commissioner pursuant to subsection (d),
			 that meets one of the following:
(1) 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 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;
(2) A United
			 States jurisdiction that meets the requirements for accreditation under the
			 National Association of Insurance Commissioners financial standards and
			 accreditation program; or
(3) A
			 qualified jurisdiction, as determined by the commissioner pursuant to section
			 431:4A-101(e)(3),
			 HRS, and section
			 16-168-7(c),
			 which is not otherwise described in paragraph (1) or (2) of this section 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 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 National Association of Insurance Commissioners 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;
			 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 National
			 Association of Insurance Commissioners.