Reinsurance Focus

The NAIC’s Reinsurance Task Force has been active of late, exposing six different drafts for comment.

Certified Reinsurers

The Reinsurance Financial Analysis (E) Working Group (ReFAWG) developed the Uniform Application Checklist for Certified Reinsurers to help ensure that a reinsurer’s application for certification is complete under the requirements of the Credit for Reinsurance Models. The Checklist also facilitates the “passporting” process, whereby a state has the discretion to defer to another state’s certification and rating of a reinsurer. This latest draft of the Checklist makes changes to the section addressing “Disputed and/or Overdue Reinsurance Claims/Business Practices.” In February 2015, ReFAWG instructed staff to prepare this now-exposed memorandum outlining the group’s responsibilities relating to certified reinsurers and the passporting process.

The comment deadline for these two items is September 15, 2015.

Credit for Reinsurance – XXX/AXXX

Having been charged with creating a new model regulation to establish requirements regarding the reinsurance of XXX/AXXX life insurance policies, the Reinsurance (E) Task Force exposed the draft Non-Universal Life and Universal Life With Secondary Guarantees Credit for Reinsurance Model Regulation. The Task Force also exposed two options for revisions to the Credit for Reinsurance Model Law (#785) to authorize adoption of this new model regulation, Option 1 and Option 2. Key topics that emerged in the drafting of the new model regulation are discussed in an exposed memorandum from its drafting group.

The comment deadline for these four items is September 30, 2015.

This post written by Anthony Cicchetti.

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