Pennsylvania Code › Title 31 - INSURANCE › Part VIII - Miscellaneous Provisions › Chapter 161 - REQUIREMENTS FOR QUALIFIED AND CERTIFIED REINSURERS › Section 161.3a - Requirements for certified reinsurers

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Certification as a certified
				reinsurer.
To be eligible for certification as a certified reinsurer,
				the assuming insurer shall meet the following requirements:
(1) The assuming insurer shall be domiciled
				and licensed to transact insurance or reinsurance in a qualified jurisdiction.
(i) In accordance with reporting and
				notification requirements that may be established by the NAIC, the Commissioner
				will create a list of qualified jurisdictions, which will be published annually
				in the
Pennsylvania Bulletin
.
(ii) United States jurisdictions that meet
				the requirement for accreditation under the NAIC financial standards and
				accreditation program will be recognized as qualified jurisdictions.
(iii) To determine whether the domiciliary
				jurisdiction of an alien assuming insurer is eligible to be recognized as a
				qualified jurisdiction, the Commissioner will evaluate:
(A) The appropriateness and effectiveness of
				the reinsurance supervisory system of the jurisdiction, initially and on an
				ongoing basis.
(B) The rights,
				benefits and the extent of reciprocal recognition afforded by the non-United
				States jurisdiction to reinsurers licensed and domiciled in the United
				States.
(C) Whether the
				jurisdiction is a qualified jurisdiction as determined by the NAIC through the
				committee process. If the Commissioner approves a jurisdiction as qualified
				that does not appear on the NAIC's list of qualified jurisdictions, the
				Commissioner will provide thoroughly documented justification of
				reasons.
(D) The framework under
				which the assuming insurer is regulated.
(E) The structure and authority of the
				domiciliary regulator with regard to solvency regulation requirements and
				financial surveillance.
(F) The
				substance of financial and operating standards for assuming insurers in the
				domiciliary jurisdiction.
(G) The
				form and substance of financial reports required to be filed or made publicly
				available by reinsurers in the domiciliary jurisdiction and the accounting
				principles used.
(H) The
				domiciliary regulator's willingness to cooperate with United States regulators
				in general and the Commissioner in particular.
(I) The history of performance by assuming
				insurers in the domiciliary jurisdiction.
(J) 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.
(iv) A
				domiciliary jurisdiction of an alien assuming insurer is not eligible to be
				recognized as a qualified jurisdiction unless:
(A) The jurisdiction has agreed to share
				information and cooperate with the Commissioner with respect to certified
				reinsurers domiciled within that jurisdiction.
(B) The jurisdiction adequately and promptly
				enforces final United States judgments and arbitration awards.
(v) If a certified reinsurer's
				domiciliary jurisdiction ceases to be a qualified jurisdiction, the
				Commissioner may withdraw recognition of that jurisdiction.