Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 12 - CREDIT FOR REINSURANCE › Section 836-012-0048 - Credit for Reinsurance - Reciprocal Jurisdictions

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Pursuant to Oregon Laws 2021, chapter
			 204, section 2, the director 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 director pursuant to section (4), that meets
			 one of the following:
(a) 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 section, 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;
(b) A U.S. jurisdiction that meets the
			 requirements for accreditation under the NAIC financial standards and
			 accreditation program; or
(c) A
			 qualified jurisdiction, as determined by the director pursuant to ORS
			 731.511(5)
			 and OAR 836-012-0046(3), which is not otherwise described in subsection (a) or
			 (b) above and which the director 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 worldwide group governance, solvency and capital, and reporting, as
			 applicable, by the director 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 director in
			 accordance with a memorandum of understanding or similar document between the
			 director 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.