Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 3 - Credit for Reinsurance › Section 230-RICR-20-45-3.9 - Credit for Reinsurance - Reciprocal Jurisdictions

Current through June 14, 2024
A. Pursuant to R.I. Gen. Laws §
										27-1.1-1(f), the
				  Superintendent 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 Superintendent pursuant to §
										3.9(D)   of
				  this Part, that meets one (1) 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
				  §
											3.9(B)   of this Part, 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 R.I.
				  Gen. Laws §
											27-1.1-1(e)(3)
				  and §
											3.8(C)   of this Part, which is not otherwise described in
				  §§
											3.9(B)(1) and (2)   of this Part 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 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 Superintendent 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; 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.