Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 1 - GENERAL PROVISIONS › Rule 56 - Credit for Reinsurance › Section 56-7.8 - Credit for reinsurance; reciprocal jurisdictions

Current through July 10, 2024
Authority: IC 27-1-3-7; IC 27-6-10.1-5
Affected: IC 5-14-3-4; IC 27-6-10.1
Sec. 7.8.
(a)
				Pursuant to IC 27-6-10.1-2(F)(1), 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
				rule.
(b) A reciprocal jurisdiction
				is a jurisdiction, as designated by the commissioner pursuant to subsection
				(d), that meets one (1) of the following:
(1)
				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;
(2) A U.S.
				jurisdiction that meets the requirements for accreditation under the National
				Association of Insurance Commissioners (NAIC) financial standards and
				accreditation program; or
(3) A
				qualified jurisdiction, as determined by the commissioner pursuant to IC
				27-6-10.1-2(E)(3) and section 7.5(c) of this rule, which is not otherwise
				described in subdivision (1) or (2), 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 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.
(B) 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.
(C) 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.
(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.