Oklahoma Administrative Code › Title 365 - Insurance Department › Chapter 25 - Other Licensees › Subchapter 7 - Companies › Part 11 - CREDIT FOR REINSURANCE › Section 365:25-7-74 - Credit for reinsurance-reciprocal jurisdictions

Current through
				  Vol. 41, No. 20, July 1, 2024
(a) Pursuant to 36 O.S. § 5122(G), 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 regulation.
(b) A "Reciprocal Jurisdiction" is a
				  jurisdiction, as designated by the Commissioner pursuant toSubsection (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, 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 NAIC financial standards and
				  accreditation program; or
(3) A
				  qualified jurisdiction, as determined by the Commissioner pursuant to 36 O.S.
				  § 5122(F)(3) and OAC
				  365:25-7-73(c),
				  which is not otherwise described in Paragraph (1) or (2) above 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 world wide 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
(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.