NAIC PROPOSES THE REINSURANCE REGULATORY MODERNIZATION ACT OF 2009
On September 15, 2009, the National Association of Insurance Commissioners approved for submission to Congress the Reinsurance Regulatory Modernization Act of 2009, which would alter state regulation of reinsurance, and provide for federal preemption. If enacted, the legislation would create two new classes of reinsurers: national reinsurers (United States) and port of entry reinsurers (non-United States). To transact reinsurance business in the United States, national reinsurers would be licensed through a single home state. Port of entry reinsurers would be certified through a single port of entry state. At their election, reinsurers also could continue operating under the existing regulatory regime. The legislation also provides for the establishment of the Reinsurance Supervision Review Board as a federal entity responsible for evaluating states and non-United States jurisdictions. State insurance regulators would be responsible for evaluating national and port of entry reinsurers and establishing collateral requirements for reinsurance agreements. Conflicting state laws oncredit requirements would be preempted as to national and port of entry reinsurers.
This post written by Brian Perryman.
