Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 740 - CREDIT FOR REINSURANCE › Section 031-740-10 - Reinsurers domiciled and licensed in reciprocal jurisdictions

Current through 2024-29, July 17, 2024
A. Pursuant to Title
				 24-A M.R.S.A.
				§731-B(1) (B-3), the
				Superintendent shall allow credit for reinsurance ceded by a domestic insurer
				to an assuming insurer that has its domicile or head office in a Reciprocal
				Jurisdiction and which meets the other requirements of this rule.
B. A "Reciprocal Jurisdiction" is a
				jurisdiction, as designated by the Superintendent pursuant to Subsection D,
				that meets one of the following:
(1) A
				non-U.S. jurisdiction that is subject to an in-force covered agreement with the
				United States, as long as each agreeing jurisdiction is within its legal
				authority to enter the agreement, 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 section, a "covered agreement" is an
				agreement entered into pursuant to the federal 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 NAIC
				financial standards and accreditation program; or
(3) A qualified jurisdiction, as determined
				by the Superintendent pursuant to Title
				 24-A M.R.S.A.
				§731-B(1) (B-2)(3) and
				Subsection
				6(D) of this rule,
				which is not otherwise described in Paragraph (1) or (2) above and which the
				Superintendent determines meets all of the following additional requirements:
(a) Provides that an insurer which has its
				head office or is domiciled in that jurisdiction shall receive credit for
				reinsurance ceded to a U.S.-domiciled assuming insurer in the same manner as
				credit for reinsurance is received in this State for reinsurance assumed by
				insurers domiciled in that 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 that 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 that 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, by the Superintendent or
				the insurance regulator of the domiciliary state, as applicable, 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 that jurisdiction
				that information regarding insurers and their parent, subsidiary, or affiliated
				entities, if applicable, shall be provided to the Superintendent in accordance
				with a memorandum of understanding or similar document between the
				Superintendent and that 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.