West Virginia Code of State Rules › Agency 114 - Insurance Commission › Title 114 - LEGISLATIVE RULE INSURANCE COMMISSIONER › Series 114-40 - Credit For Reinsurance › Section 114-40-7 - Reciprocal Jurisdictions

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1. Pursuant
				to W. Va. Code §
									33-4-15a(b)(2)(F),
				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.
7.2. A
				"reciprocal jurisdiction" is a jurisdiction, as designated by the commissioner
				pursuant to subsection 7.4 of this section, that meets one of the following:
7.2.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
				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. §§
											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;
7.2.b. A U.S. jurisdiction
				that meets the requirements for accreditation under the National Association of
				Insurance Commissioners' financial standards and accreditation program; or
7.2.c. A qualified jurisdiction, as determined by
				the commissioner pursuant to W. Va. Code §
										33-4-15a(b)(2)(E)(iii)
				and subsection 6.3 of this rule, which is not otherwise described in subdivision a
				or b of this subsection and which the commissioner determines meets all of the
				following additional requirements:
7.2.c.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 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;
7.2.c.2. 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;
7.2.c.3. 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 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
7.2.c.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 but not limited to the
				International Association of Insurance Supervisors Multilateral Memorandum of
				Understanding or other multilateral memoranda of understanding coordinated by the
				National Association of Insurance Commissioners.