Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 35 - Regulation 56-Credit for Reinsurance › Section XIII-3511 - Credit for Reinsurance-Reciprocal Jurisdictions

Current through Register Vol. 50, No. 6, June 20, 2024
A. Pursuant to
				R.S.
				22:651 F, 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
				§3511 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 §3511, 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 NAIC
				financial standards and accreditation program; or
3. a qualified jurisdiction, as determined by
				the commissioner pursuant to
				R.S.
				22:651 E(3) and
				§3510 C, which is not otherwise
				described in paragraph (1) or (2) above 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 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; 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.