On April 26, 2018, Governor Matt Bevin of Kentucky signed House Bill No. 464, adding Kentucky to a growing list of states to have amended their Insurance Codes to conform with the 2016 amendments to the NAIC Credit for Reinsurance Model Law. These changes to Kentucky law include, among others:
- allowing the commissioner to authorize reductions in the required surplus for single assuming insurers who have discontinued underwriting new business for three years;
- making numerous changes to the trusts and surpluses required;
- providing criteria by which the commissioner may certify reinsurers, including allowing the commissioner to defer to the certifications of other NAIC-accredited jurisdictions;
- allowing certified reinsurers to maintain their certifications on inactive status after ceasing to assume new business;
- requiring the commissioner to assign ratings to each certified reinsurer based on their financial strength and to publish such ratings;
- specifically granting the commissioner the authority to promulgate regulations regarding reinsurance of certain types of life insurance, variable annuities, long-term care insurance, and other life and health insurance and annuity products for which the NAIC adopts model regulations related to reinsurance.
The amendments will take effect on January 1, 2019.
This post written by Jason Brost.
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