Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3851 - CREDIT FOR REINSURANCE - RECIPROCAL JURISDICTIONS

Current through Register Vol. 13, July 5, 2024
(1) Pursuant to
				33-2-1216,
				MCA, 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 subchapter.
(2) A "Reciprocal jurisdiction" is a
				jurisdiction, as designated by the commissioner pursuant to (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 (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
				33-2-1216,
				MCA, which is not otherwise described in (2)(a) or (b) and which the
				commissioner determines meets all of the following additional requirements:
(i) 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;
(ii) 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;
(iii) 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
(iv) 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.