Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 300 - RULES GOVERNING CREDIT FOR REINSURANCE › Section 14VAC5-300-97 - Credit for reinsurance; reciprocal jurisdictions

Current through Register Vol. 40, No. 24, July 15, 2024
A. Pursuant to §
									38.2-1316.2E
				of the Act, the commission 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
				that meets the other requirements of this chapter.
B. A "reciprocal jurisdiction" is a
				jurisdiction, as designated by the commission pursuant to subsection D of this
				section, that meets one of the following:
1.
				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. 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 USC §§
											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 Commonwealth or for allowing the ceding insurer to recognize
				credit for reinsurance;
2. A United
				States jurisdiction that meets the requirements for accreditation under the
				NAIC financial standards and accreditation program; or
3. A qualified jurisdiction, as determined by
				the commission pursuant to §
										38.2-1316.2D
				of the Code of Virginia and
				14VAC5-300-95
				C, that is not otherwise described in subdivision 1 or 2 of this subsection and
				that the commission determines meets all of the following additional
				requirements:
a. Provides that an insurer
				that 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;
b. 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;
c. 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 Commonwealth 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 commission 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 the insurers'
				parent, subsidiary, or affiliated entities, if applicable, shall be provided to
				the commission in accordance with a memorandum of understanding or similar
				document between the commission and such qualified jurisdiction, including to
				the International Association of Insurance Supervisors Multilateral Memorandum
				of Understanding or other multilateral memoranda of understanding coordinated
				by the NAIC.