The Connecticut Insurance Department (the “CID”) has approved Swiss Reinsurance Co. Ltd. as the first certified reinsurer eligible for reduced credit for reinsurance collateral requirements in Connecticut, according to a notice published on the CID website April 2, 2013.
As we reported here, Connecticut amended its credit for reinsurance statutes effective October 1, 2012 pursuant to Public Act No. 12-139 (the “Act”) to allow unauthorized reinsurers to apply for certified reinsurer status, following amendment of the NAIC Credit for Reinsurance Model Law in November 2011. The CID proposed corresponding amendments to Connecticut’s credit for reinsurance regulations in October 2012, which are based on the revised NAIC Credit for Reinsurance Model Regulation and which provide the standards by which a reinsurer may be certified as a reinsurer in Connecticut for credit for reinsurance purposes. The proposed amended regulations are currently pending approval by the Legislative Regulation Review Committee of the Connecticut General Assembly and filing with the Connecticut Secretary of the State.
In the interim, CID Bulletin No. FS-25, issued March 1, 2013, provides that, “insofar as the proposed amended regulations implement existing statutes and more closely reflect the national standard for credit for reinsurance in conformity with the NAIC Model Regulation,” insurers may seek to take credit for reinsurance ceded in accordance with the Act and the proposed amended regulations, and insurers may apply to become certified reinsurers in accordance with the Act and the proposed amended regulations. CID Bulletin No. FS-25 also provides a checklist to be used by applicants for certified reinsurer status in Connecticut.
Other jurisdictions that have amended their credit for reinsurance laws to date to permit reduced collateral for unauthorized reinsurers satisfying specific requirements include California, Delaware, Florida, Georgia, Indiana, Louisiana, New Jersey, New York, Pennsylvania and Virginia.