The National Association of Insurance Commissioners (NAIC) has revised the Credit for Reinsurance Model Law and Credit for Reinsurance Model Regulation, bringing them into line with arrangements in place for the European Union and United Kingdom.
The changes make the models consistent with provisions of covered agreements with the EU and UK for reinsurance collateral requirements. The changes will provide reinsurers domiciled in NAIC-qualified jurisdictions other than within the EU – namely Bermuda, Japan and Switzerland – with the possibility of similar reinsurance collateral reductions.
Eric Cioppa, president of NAIC and Maine insurance superintendent, urged his colleagues to work with their state legislatures to pass the updates quickly. "These changes underscore the commitment of US insurance regulators to resolving any disparate treatment of US insurance firms operating abroad," he said.
States must comply with the provisions in the covered agreement within five years of the signing of the covered agreement with the EU, which took place on September 22 2017, or face potential preemption by the Federal Insurance Office.
National Association of Insurance Commissioners, NAIC, Eric Cioppa