Since the adoption of the amendments to the National Association of Insurance Commissioners (“NAIC”) Credit for Reinsurance Model Law (#785) and Credit for Reinsurance Model Regulation (#786) at the NAIC’s 2011 Fall Meeting, additional states have continued to make legislative and regulatory changes to conform their credit for reinsurance laws and regulations to the NAIC’s amended models. Although NAIC model laws and regulations do not become effective in any given state unless and until they are incorporated through the legislation or regulation adoption process, conforming to the NAIC’s credit for reinsurance models is essential for a state to maintain NAIC accreditation.
Set forth below is a chart listing the states that have amended their credit for reinsurance laws to-date. The chart identifies certain key areas in which these states’ laws and regulations are different regarding reduced collateral for “certified” reinsurers from the NAIC’s models, which were described in prior Mayer Brown Global Corporate Insurance & Regulatory Bulletins. As identified with a (*) below, five additional states have amended their credit for reinsurance laws to conform to the NAIC’s amended credit for reinsurance model law and regulation over the course of the summer. (As noted below, the legislation in California has not yet been signed by the governor as of the date of this article.)
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Legislation has also been introduced in Illinois and Missouri to amend those states’ credit for reinsurance laws to conform to the amended NAIC credit for reinsurance models. We expect additional states to consider similar amendments to their laws and regulations in the near future.