As we previously reported a year ago, the National Association of Insurance Commissioners (NAIC) adopted amendments to the Credit for Reinsurance Model Law (#785) and Credit for Reinsurance Model Regulation (#786) to implement the certain international agreements to eliminate collateral requirements for qualifying reinsurers. The Models created a new category of reinsurers, called “reciprocal reinsurers”, which may qualify to provide reinsurance to U.S. cedents without posting collateral for reinsurance credit.
To date approximately 48 U.S. jurisdictions have enacted reciprocal reinsurer legislation and 38 of those jurisdictions have adopted or proposed the enabling regulations. Many of these states are now accepting applications.
