New Mexico Administrative Code › Title 13 - INSURANCE › Chapter 2 - INSURANCE COMPANY LICENSING AND OPERATION › Part 8 - CREDIT FOR REINSURANCE › Section 13.2.8.16 - CREDIT FOR REINSURANCE-RECIPROCAL JURISDICTIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. In accordance with Sections 59A-12E-10
				through 59A-12E-12 and Subsections (A) through (D) of Section 59A-12E-13 NMSA
				1978, the superintendent will 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 that
				meets the other requirements of this rule.
B. A reciprocal jurisdiction shall be one of
				the following:
(1) a non-U.S. jurisdiction
				that is subject to an in-force covered agreement with the U.S., each within its
				legal authority, or, in the case of a covered agreement between the U.S. 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 superintendent pursuant to Section 59A-12E-8 and Subsection A of Section
				59A-12E-9 NMSA 1978 and Subsections A and B of
				13.2.8.15
				NMAC, and Paragraph (1) of Subsection C of
				13.2.8.15
				NMAC which is not otherwise described in Paragraph (1) or (2) of this
				Subsection 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 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 rule 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 superintendent of this state or the superintendent 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; provided, that nothing in this subparagraph shall
				enhance or limit the authority of the superintendent with respect to the
				group-wide supervision of insurance holding company systems pursuant to the
				Insurance Holding Company Law, Chapter 59A, Article 37 NMSA 1978, the rules
				implementing that law, Title 13, Ch. 2, Part 2 NMAC, Insurance Holding
				Companies, or other applicable state law; 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 superintendent in accordance with a
				memorandum of understanding or similar document between the superintendent 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.