Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3841 - CERTIFICATION OF ASSUMING INSURERS - ELIGIBILITY FOR CERTIFICATION

Current through Register Vol. 13, July 5, 2024
(1) To be eligible
				for certification by the department, the assuming insurer shall be domiciled
				and licensed to transact insurance or reinsurance in a qualified jurisdiction,
				as determined by the commissioner pursuant to the following:
(a) United States jurisdictions that meet the
				requirements for accreditation under the NAIC financial standards and
				accreditation program shall be recognized as qualified jurisdictions;
(b) A list of qualified jurisdictions shall
				be published through the NAIC Committee Process. The commissioner shall
				consider this list in determining qualified jurisdictions. If the commissioner
				approves a jurisdiction as qualified that does not appear on the list of
				qualified jurisdictions, the commissioner shall provide thoroughly documented
				justification with respect to the criteria in this rule; and
(c) In order to determine whether the
				domiciliary jurisdiction of a non-United States assuming insurer is eligible to
				be recognized as a qualified jurisdiction, the commissioner shall evaluate the
				reinsurance supervisory system of the non-United States jurisdiction, both
				initially and on an ongoing basis, and consider the rights, benefits, and the
				extent of reciprocal recognition afforded by the non-United States jurisdiction
				to assuming insurers licensed and domiciled in the United States. The
				commissioner shall determine the appropriate approach for evaluating the
				qualifications of such jurisdictions, and create and publish a list of
				jurisdictions whose assuming insurers may be approved by the commissioner as
				eligible for certification. A qualified jurisdiction must agree to share
				information and cooperate with the commissioner with respect to all assuming
				insurers domiciled within that jurisdiction. Additional factors to be
				considered in determining whether to recognize a qualified jurisdiction, in the
				discretion of the commissioner, include but are not limited to the following:
(i) the framework under which the assuming
				insurer is regulated;
(ii) the
				structure and authority of the domiciliary regulator with regard to solvency
				regulation requirements and financial surveillance;
(iii) the substance of financial and
				operating standards for assuming insurers in the domiciliary
				jurisdiction;
(iv) the form and
				substance of financial reports required to be filed or made publicly available
				by assuming insurers in the domiciliary jurisdiction and the accounting
				principles used;
(v) the
				domiciliary regulator's willingness to cooperate with United States regulators
				in general and the commissioner in particular;
(vi) the history of performance by assuming
				insurers in the domiciliary jurisdiction;
(vii) any documented evidence of substantial
				problems with the enforcement of final United States judgments in the
				domiciliary jurisdiction. A jurisdiction will not be considered to be a
				qualified jurisdiction if the commissioner has determined that it does not
				adequately and promptly enforce final United States judgments or arbitration
				awards;
(viii) any relevant
				international standards or guidance with respect to mutual recognition of
				reinsurance supervision adopted by the International Association of Insurance
				Supervisors or successor organization; and
(ix) any other matters deemed relevant by the
				commissioner.
(d) If,
				upon conducting an evaluation under this rule with respect to the reinsurance
				supervisory system of any non-United States assuming insurer, the commissioner
				determines that the jurisdiction qualifies to be recognized as a qualified
				jurisdiction, the commissioner shall publish notice and evidence of such
				recognition in an appropriate manner. The commissioner may establish a
				procedure to withdraw recognition of those jurisdictions that are no longer
				qualified.