Members of the National Association of Insurance Commissioners have adopted a reinsurance regulatory framework proposal that has been in the works for a decade.
Members of the plenary, the body at the NAIC, Kansas City, Mo., that represents all member jurisdictions, also voted here at the group’s winter meeting to adopt a companion proposal that establishes principles for creating a reinsurance regulatory department.
The Reinsurance Regulatory Modernization Framework, drafted by the NAIC Reinsurance Task Force, establishes a “conceptual framework” for creating 2 new classes of reinsurers in the United States: U.S.-domiciled national reinsurers and non-U.S.-based port-of-entry reinsurers.
The proposal also could lead to modification of the 100% collateral requirement for foreign reinsurers, and it sets up a framework for creating a new, state-based approach to reinsurance regulation.
A U.S. reinsurer would have to get a license from just one state, and a non-U.S. reinsurer from an approved jurisdiction would have to get certification from just one state.