North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-07.1 - Credit for Reinsurance Model Regulation › Section 45-03-07.1-04.2 - Credit for reinsurance - Reciprocal jurisdictions

Current through Supplement No. 393, July, 2024
1. Pursuant to
				subsection 7 of North Dakota Century Code section 26.1-31.2-01, 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.
2. A
				"reciprocal jurisdiction" is a jurisdiction, as designated by the commissioner
				pursuant to subdivision d, that meets one of the following:
a A non-United States 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.
b. 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. sections
				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;
c. A United States
				jurisdiction that meets the requirements for accreditation under the national
				association of insurance commissioners financial standards and accreditation
				program; or
d. A qualified
				jurisdiction, as determined by the commissioner pursuant to subdivision c of
				subsection 6 of North Dakota Century Code section 26.1-31.2-01 and subsection 3
				of section 45-03-07.1-04.1, which is not otherwise described in subdivision a
				or b and which the commissioner determines meets all of the following
				additional requirements:
(1) Provides that an
				insurer which has its head office or is domiciled in such qualified
				jurisdiction shall receive credit for reinsurance ceded to a United
				States-domiciled assuming insurer in the same manner as credit for reinsurance
				is received for reinsurance assumed by insurers domiciled in such qualified
				jurisdiction;
(2) Does not require
				a United States-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-United States jurisdiction or
				as a condition to allow the ceding insurer to recognize credit for such
				reinsurance;
(3) Recognizes the
				United States 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 national association of insurance commissioners 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;
				and
(4) 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 the International Association of
				Insurance Supervisors Multilateral Memorandum of Understanding or other
				multilateral memoranda of understanding coordinated by the national association
				of insurance commissioners.