California is one step closer to aligning its reinsurance laws with the requirements of federal law and necessary revisions in the National Association of Insurance Commissioners (NAIC) Reinsurance Model Law and Regulations.
The state’s Senate Insurance Committee has passed SB 1216, authored by Senator Alan Lowenthal, D-Long Beach, by a vote of 8 to 0. SB 1216, which received bipartisan support, is sponsored by California Insurance Commissioner Dave Jones.
The bill now heads to the Senate Appropriations Committee for consideration.
This bill amends current insurance law and adds new statutory language to reflect the NAIC model law. Four states had already passed the legislation–they are Florida, New York, New Jersey and Indiana, while Connecticut and Virginia passed the legislation this year. Legislation is pending in Delaware and Georgia, as it is in California.
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Specifically, SB 1216 will:
· Specify the criteria for a domiciled insurer to qualify as a professional reinsurer.