NAIC Invites Further Comments on Certified Reinsurers Uniform Application Passporting Checklist, Credit for Reinsurance Model Law Revisions
Aug 19, 2015
Above: Colodny Fass’ Claude Mueller Is Monitoring Revisions to the NAIC’s Certified Reinsurers Uniform Application “Passporting” Checklist, Credit for Reinsurance Model Law
The National Association of Insurance Commissioners’ (“NAIC”) continues to revise the Uniform Application Checklist for Certified Reinsurers (“Checklist”) intended for use by states in the certified reinsurer “passporting” process.
Established by the NAIC, “passporting” entails a peer review system by states surrounding the certification of foreign reinsurers for a nationwide “passport.” To date, more than 30 foreign reinsurers have been certified under this peer review system.
With comments due by September 15, revisions to the Uniform Application Checklist for Certified Reinsurers address an industry proposal on the disputed and overdue reinsurance section of the Checklist and propose adjustments to the data filing parameters that an applicant for certified reinsurer status would need to follow on the disclosure of disputed and/or overdue reinsurance.
Specifically within the Disputed and/or Overdue Reinsurance Claims/Business Practices section of the Checklist, revisions address parameters of material past due reinsurance obligations to U.S. cedents. In addition, language within this section was adjusted to remove the statement, “including its record of compliance with reinsurance contractual terms” regarding the rationale for overdue balances.
Lastly, the statement, “Upon receipt of such notice and explanation, the Commissioner may request additional information concerning the applicant’s claims practices with regards to any or all US ceding insurers” was added as a closing paragraph for the section.
Also published for comment is the “Certified Reinsurers and Passporting Public Document“–a memorandum detailing the Reinsurance Financial Analysis Working Group’s involvement in passporting of certified reinsurers. It specifies which certified reinsurers have been recommended for passporting and the process for how a reinsurer becomes certified and passported.
Comments are due by September 30 on two approaches to revising the NAIC Credit for Reinsurance Model Law (#785). Option 1 would provide specific authority to an insurance commissioner to adopt regulations addressing XXX/AXXX reinsurance transactions. Option 2 would provide specific authority to the commissioner to adopt regulations with respect to variable annuities, long-term care and XXX/AXXX captive reinsurance transaction.
Also offered for public comment is the XXX/AXXX Credit for Reinsurance Model Regulation Draft, which establishes requirements regarding the reinsurance of XXX/AXXX policies, and a memorandum entitled “Drafting of the XXX/AXXX Credit for Reinsurance Model Regulation: Key Discussion Topics Memorandum,” which details key discussion topics and actions taken during the drafting of the proposed XXX/AXXX Model Regulation.
Hyperlinks to each document are provided below:
Comment Deadline of September 15, 2015
- Revisions to the Uniform Application Checklist for Certified Reinsurer
- Certified Reinsurers and Passporting Public Document
Comment Deadline of September 30, 2015
- XXX/AXXX Credit for Reinsurance Model Regulation Draft
- Drafting of the XXX/AXXX Credit for Reinsurance Model Regulation: Key Discussion Topics Memorandu
- Revisions to the Credit for Reinsurance Model Law (#785) – Option 1
- Revisions to the Credit for Reinsurance Model Law (#785) – Option 2
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