Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-53902 - Credit for reinsurance-Reciprocal jurisdiction

Current through Register Vol. 24-14, July 15, 2024
(1) Pursuant to section 2, chapter 138, Laws
				of 2021, 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 regulation.
(2) A "reciprocal jurisdiction" is a
				jurisdiction, as designated by the commissioner 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 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. Secs. 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 commissioner pursuant to
				RCW
				 48.12.430(3) and WAC
				284-13-539(3),
				which is not otherwise described in (a) or (b) of this subsection and which the
				commissioner determines meets all of the following additional requirements:
(i) 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;
(ii) 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;
(iii) 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 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
(iv) 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 NAIC.