Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 130.00 - Credit For Reinsurance › Section 130.08 - Credit for Reinsurance - Reciprocal Jurisdiction

Current through Register 1525, July 5, 2024
(1) Pursuant to M.G.L. c. 175, §
			 20A(1)(E½), 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
			 211 CMR
			 130.00.
(2) A Reciprocal Jurisdiction is a
			 jurisdiction, as designated by the commissioner pursuant to 211 CMR 130.08(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 211 CMR 130.08(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; or
(c) A qualified jurisdiction, as determined
			 by the commissioner pursuant to M.G.L. c. 175 § 20A(1)(E)(iii) and
			 211 CMR
			 130.07(3), which is not
			 otherwise described in 211 CMR 130.08(2)(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; 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.