Alabama, Pennsylvania, and Louisiana have joined the ranks of several other states that have adopted regulations nearly identical to the NAIC Credit for Reinsurance Model Regulation, which allows a ceding insurer to receive a credit for reinsurance as an asset or reduction from liability when insurance is ceded to a reinsurer that meets certain requirements. Alabama’s Credit for Reinsurance Regulation passed the House and the Senate on April 18, 2013 and May 2, 2013, respectively, and takes effect on January 1, 2014. H. B. 199, Reg. Sess. (Ala. 2013). Pennsylvania amended its Requirements for Qualified and Certified Reinsurers on May 25, 2013 with an effective date of June 24, 2013 to mirror recent amendments to the NAIC Model Regulation. Pa. Ins. Dep’t., Requirements for Qualified and Certified Reinsurers, 43 Pa.B. 2816 (May 25, 2013). Louisiana passed a bill effective May 23, 2013 which allows reinsurance credits to captive insurers under certain conditions. S. B. 120, Reg. Sess. (La. 2013).
This post written by Abigail Kortz.
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