§ 26-5-112 — Credit allowed a domestic ceding insurer

Wyoming § 26-5-112

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 5: KINDS OF INSURANCE, LIMITS OF RISK, REINSURANCE

Text

(a) Except as provided in W.S. 26-5-113, and in addition
to any rules adopted by the commissioner pursuant to W.S.
26-5-116 relating to the valuation of assets or reserve credits,
the amount and forms of security supporting reinsurance
arrangements and the circumstances pursuant to which credit will
be reduced or eliminated, credit for reinsurance shall be
allowed a domestic ceding insurer as either an asset or a
deduction from liability on account of reinsurance ceded only if
the reinsurer meets the requirements of any one (1) of the
following paragraphs:
(i) The reinsurance is ceded to an assuming insurer
which is licensed to transact insurance in this state;
(ii) The reinsurance is ceded to an assuming insurer
which is accredited as a reinsurer in this state and whose
accreditation has not been revoked by the commissioner. An
accredited reinsurer is one which:
(A) Files with the commissioner evidence of its
submission to this state's jurisdiction;
(B) Submits to this state's authority to examine
its books and records;
(C) Is licensed to transact insurance or
reinsurance in at least one (1) state, or in the case of a
United States branch of an alien assuming insurer is entered
through and licensed to transact insurance or reinsurance in at
least one (1) state;
(D) Files annually with the commissioner a copy
of its annual statement filed with the insurance department of
its state of domicile and a copy of its most recent audited
financial statement; and
(I) Repealed by Laws 2017, ch. 29, § 2.
(II) Repealed by Laws 2017, ch. 29, § 2.
(E) Demonstrates to the satisfaction of the
commissioner that it has adequate financial capacity to meet its
reinsurance obligations and is otherwise qualified to assume
reinsurance from domestic insurers. An assuming insurer is
deemed to meet this requirement as of the time of its
application if it maintains a surplus as regards policyholders
in an amount not less than twenty million dollars
($20,000,000.00) and its accreditation has not been denied by
the commissioner within ninety (90) days after submission of its
application.
(iii) The reinsurance is ceded to an assuming insurer
which is domiciled and licensed in, or in the case of a United
States branch of an alien assuming insurer is entered through
and licensed in, a state which employs standards regarding
credit for reinsurance which meet or exceed those applicable
under this section and the assuming insurer or United States
branch of an alien assuming insurer:
(A) Maintains a surplus as regards policyholders
in an amount not less than twenty million dollars
($20,000,000.00), provided however that this requirement does
not apply to reinsurance ceded and assumed pursuant to pooling
arrangements among insurers in the same holding company system;
and
(B) Submits to the authority of this state to
examine its books and records.
(iv) The reinsurance is ceded to an assuming insurer
not meeting the requirements of paragraphs (i) through (iii) or
(v) through (vii) of this subsection but only with respect to
the insurance of risks located in jurisdictions where such
reinsurance is required by applicable law or regulation of that
jurisdiction;
(v) The reinsurance is ceded to an assuming insurer
which maintains a trust fund in a qualified United States
financial institution, as defined in W.S. 26-5-114(b), for the
payment of the valid claims of its United States policyholders
and ceding insurers, their assigns and successors in interest.
The assuming insurer shall report annually to the commissioner
information substantially the same as that required to be
reported on the NAIC annual statement form by licensed insurers
to enable the commissioner to determine the sufficiency of the
trust fund. The assuming insurer shall submit to examination of
its books and records by the commissioner and bear the expense
of examination. In the case of:
(A) A single assuming insurer, the trust shall
consist of a trusteed account representing the assuming
insurer's liabilities attributable to business written in the
United States and, in addition, the assuming insurer shall
maintain a trusteed surplus of not less than twenty million
dollars ($20,000,000.00). At any time after the assuming insurer
has permanently discontinued underwriting new business secured
by the trust for at least three (3) years, the commissioner with
principal regulatory oversight of the trust may authorize a
reduction in the required trusteed surplus, but only after a
finding, based on an assessment of the risk, that the new
required surplus level is adequate for the protection of United
States ceding insurers, policyholders and claimants in light of
reasonably foreseeable adverse loss development. The risk
assessment may involve an actuarial review, including an
independent analysis of reserves and cash flows, and shall
consider all material risk factors, including when applicable
the lines of business involved, the stability of the incurred
loss estimates and the effect of the surplus requirements on the
assuming insurer's liquidity or solvency. The minimum required
trusteed surplus may not be reduced to an amount less than
thirty percent (30%) of the assuming insurer's liabilities
attributable to reinsurance ceded by United States ceding
insurers covered by the trust;
(B) A group including incorporated and
individual unincorporated underwriters, the trust shall consist
of a trusteed account representing the group's liabilities
attributable to business written in the United States and, in
addition:
(I) The group shall maintain a trusteed
surplus of which one hundred million dollars ($100,000,000.00)
shall be held jointly for the benefit of United States ceding
insurers of any member of the group;
(II) Within ninety (90) days after its
financial statements are due, the group shall make available to
the commissioner an annual certification of the solvency of each
underwriter by the group's domiciliary regulator and its
independent public accountants; and
(III) The incorporated members of the group
shall not be engaged in any business other than underwriting as
a member of the group and shall be subject to the same level of
solvency regulation and control by the group's domiciliary
regulator as are the unincorporated members.
(vi) The reinsurance is ceded to an assuming insurer
that is certified by the commissioner as a reinsurer in this
state and secures its obligations in accordance with the
following provisions:
(A) Prior to certification by the commissioner,
the assuming insurer must be eligible for certification. In
order to be eligible for certification, the assuming insurer
shall:
(I) Be domiciled and licensed to transact
insurance or reinsurance in a qualified jurisdiction, as
determined by the commissioner pursuant to subparagraph (C) of
this paragraph;
(II) Maintain minimum capital and surplus,
or its equivalent, in an amount to be determined by rule and
regulation of the commissioner;
(III) Maintain financial strength ratings
from two (2) or more rating agencies deemed acceptable by rule
and regulation of the commissioner;
(IV) Agree to submit to the jurisdiction of
this state, appoint the commissioner as its agent for service of
process in this state and agree to provide security for one
hundred percent (100%) of the assuming insurer's liabilities
attributable to reinsurance ceded by United States ceding
insurers if it resists enforcement of a final United States
judgment;
(V) Agree to meet applicable information
filing requirements as determined by the commissioner, both with
respect to an initial application for certification and on an
ongoing basis; and
(VI) Satisfy any other requirements for
certification deemed necessary by the commissioner.
(B) Prior to certification by the commissioner,
an association including incorporated and individual
unincorporated underwriters must be eligible for certification
by the commissioner. In order to be eligible for certification,
an association must satisfy the requirements of subparagraph (A)
of this paragraph and comply with the following requirements:
(I) The association shall satisfy its
minimum capital and surplus requirements through the capital and
surplus equivalents, taking into account liabilities, of the
association and its members, which shall include a joint central
fund that may be applied to any unsatisfied obligation of the
association or any of its members, in an amount determined by
the commissioner to provide adequate protection;
(II) The incorporated members of the
association shall not be engaged in any business other than
underwriting as a member of the association and shall be subject
to the same level of regulation and solvency control by the
association's domiciliary regulator as are the unincorporated
members; and
(III) Within ninety (90) days after its
financial statements are due to be filed with the association's
domiciliary regulator, the association shall provide to the
commissioner an annual certification by the association's
domiciliary regulator of the solvency of each underwriter member
or, if a certification is unavailable, financial statements,
prepared by independent public accountants, of each underwriter
member of the association.
(C) Prior to certification, the assuming insurer
must be licensed and domiciled in a jurisdiction eligible to be
considered for certification by the commissioner. The
commissioner shall create and publish a list of qualified
jurisdictions, under which an assuming insurer licensed and
domiciled in such jurisdiction is eligible to be considered for
certification by the commissioner as a certified reinsurer. The
commissioner shall:
(I) In order to determine whether the
domiciliary jurisdiction of a non United States assuming insurer
is eligible to be recognized as a qualified jurisdiction,
evaluate the appropriateness and effectiveness of the
reinsurance supervisory system of the jurisdiction, both
initially and on an ongoing basis, and consider the rights,
benefits and the extent of reciprocal recognition afforded by
the non United States jurisdiction to reinsurers licensed and
domiciled in the United States. A qualified jurisdiction shall
agree to share information and cooperate with the commissioner
with respect to all certified reinsurers domiciled within that
jurisdiction. A jurisdiction shall not be recognized as a
qualified jurisdiction if the commissioner has determined that
the jurisdiction does not adequately and promptly enforce final
United States judgments and arbitration awards. Additional
factors may be considered in the discretion of the commissioner;
(II) Consider the list of qualified
jurisdictions published through the NAIC committee process in
determining qualified jurisdictions. If the commissioner
approves a jurisdiction as qualified that does not appear on the
list of qualified jurisdictions, the commissioner shall provide
thoroughly documented justification in accordance with criteria
developed under rule and regulation developed by the
commissioner;
(III) Recognize as qualified jurisdictions
the United States jurisdictions that meet the requirement for
accreditation under the NAIC financial standards and
accreditation program;
(IV) If a certified reinsurer's domiciliary
jurisdiction ceases to be a qualified jurisdiction, have the
discretion to suspend the reinsurer's certification
indefinitely, in lieu of revocation.
(D) Each certified reinsurer must receive a
financial rating from the commissioner. The commissioner shall
assign a rating to each certified reinsurer giving due
consideration to the financial strength ratings that have been
assigned by rating agencies deemed acceptable to the
commissioner pursuant to regulation. The commissioner shall
publish a list of all certified reinsurers and their ratings;
(E) A certified reinsurer shall secure
obligations assumed from United States ceding insurers under
this paragraph at a level consistent with its rating and as
specified by rule and regulation promulgated by the
commissioner. In fulfilling the requirements of this
subparagraph:
(I) In order for a domestic ceding insurer
to qualify for full financial statement credit for reinsurance
ceded to a certified reinsurer, the certified reinsurer shall
maintain security in a form acceptable to the commissioner and
consistent with the provisions of W.S. 26-5-113, or in a
multibeneficiary trust in accordance with paragraph (v) of this
subsection and subsection (b) of this section, except as
otherwise provided in this paragraph;
(II) If a certified reinsurer maintains a
trust to fully secure its obligations subject to paragraph (v)
of this subsection and subsection (b) of this section and
chooses to secure its obligations incurred as a certified
reinsurer in the form of a multibeneficiary trust, the certified
reinsurer shall maintain separate trust accounts for its
obligations incurred under reinsurance agreements issued or
renewed as a certified reinsurer with reduced security as
permitted by this paragraph or comparable laws of other United
States jurisdictions and for its obligations subject to
paragraph (v) of this subsection and subsection (b) of this
section. It shall be a condition to the grant of certification
under this paragraph that the certified reinsurer have bound
itself, by the language of the trust and agreement with the
commissioner with principal regulatory oversight of each trust
account, to fund, upon termination of any trust account, out of
the remaining surplus of the trust any deficiency of any other
trust account;
(III) The minimum trusteed surplus
requirements provided in paragraph (v) of this subsection are
not applicable with respect to a multibeneficiary trust
maintained by a certified reinsurer for the purpose of securing
obligations incurred under this paragraph, except that any trust
shall maintain a minimum trusteed surplus of ten million dollars
($10,000,000.00);
(IV) With respect to obligations incurred
by a certified reinsurer under this paragraph, if the security
is insufficient, the commissioner shall reduce the allowable
credit by an amount proportionate to the deficiency and may
impose further reductions in allowable credit upon finding there
is a material risk the certified reinsurer's obligations will
not be paid in full when due;
(V) For purposes of this paragraph, a
certified reinsurer whose certification has been terminated for
any reason shall be treated as a certified reinsurer required to
secure one hundred percent (100%) of its obligations. If the
commissioner continues to assign a higher rating as permitted by
other provisions of this section, this requirement does not
apply to a certified reinsurer in inactive status or to a
reinsurer whose certification has been suspended. As used in
this subdivision, "terminated" refers to revocation, suspension,
voluntary surrender and inactive status.
(F) If an applicant for certification has been
certified as a reinsurer in an NAIC accredited jurisdiction, the
commissioner may defer to that jurisdiction's certification and
may defer to the rating assigned by that jurisdiction, and the
assuming insurer shall be considered to be a certified reinsurer
in this state;
(G) A certified reinsurer that ceases to assume
new business in this state may request to maintain its
certification in inactive status in order to continue to qualify
for a reduction in security for its in-force business. An
inactive certified reinsurer shall continue to comply with all
applicable requirements of this paragraph, and the commissioner
shall assign a rating that takes into account the reasons why
the reinsurer is not assuming new business, if relevant.
(vii) When the reinsurance is ceded to an assuming
insurer in accordance with the following:
(A) The assuming insurer has its head office or
is domiciled in a reciprocal jurisdiction, as applicable, and is
licensed in a reciprocal jurisdiction;
(B) The assuming insurer has and maintains, on
an ongoing basis, minimum capital and surplus, or its
equivalent, calculated according to the methodology of its
domiciliary jurisdiction in an amount specified in rules adopted
by the commissioner. If the assuming insurer is an association,
including incorporated and individual unincorporated
underwriters, it shall have and maintain, on an ongoing basis,
minimum capital and surplus equivalents, which are net of
liabilities, calculated according to the methodology applicable
in its domiciliary jurisdiction and a central fund containing a
balance in amounts specified in rules adopted by the
commissioner;
(C) The assuming insurer has and maintains, on
an ongoing basis, a minimum solvency or capital ratio, as
applicable, as specified in rules adopted by the commissioner.
If the assuming insurer is an association, including
incorporated and individual unincorporated underwriters, it
shall have and maintain, on an ongoing basis, a minimum solvency
or capital ratio in the reciprocal jurisdiction where the
assuming insurer has its head office or is domiciled, as
applicable, and is also licensed;
(D) The assuming insurer agrees and provides
adequate assurance to the commissioner, in a form specified by
rules adopted by the commissioner, that:
(I) The assuming insurer shall provide
prompt written notice and explanation to the commissioner if it
falls below the minimum requirements set forth in subparagraphs
(B) or (C) of this paragraph, or if any regulatory action is
taken against it for serious noncompliance with applicable law;
(II) The assuming insurer shall consent in
writing to the jurisdiction of the courts of this state and to
the appointment of the commissioner as agent for service of
process. The commissioner may require that consent for service
of process be provided to the commissioner and included in each
reinsurance agreement. Nothing in this subdivision shall limit
or in any way alter the capacity of parties to a reinsurance
agreement to agree to alternative dispute resolution mechanisms,
except to the extent such agreements are unenforceable under
applicable insolvency or delinquency laws;
(III) The assuming insurer shall consent in
writing to pay all final judgments, wherever enforcement is
sought, obtained by a ceding insurer or its legal successor,
that have been declared enforceable in the jurisdiction where
the judgment was obtained;
(IV) Each reinsurance agreement shall
require the assuming insurer to provide security in an amount
equal to one hundred percent (100%) of the assuming insurer's
liabilities attributable to reinsurance ceded pursuant to that
agreement if the assuming insurer resists enforcement of a final
judgment applicable to the reinsurance ceded pursuant to that
agreement that is enforceable under the law of the jurisdiction
in which it was obtained or a properly enforceable arbitration
award, whether obtained by the ceding insurer or by its legal
successor on behalf of its resolution estate; and
(V) The assuming insurer shall confirm that
it is not presently participating in any solvent scheme of
arrangement which involves this state's ceding insurers. It
shall also agree to notify the ceding insurer and the
commissioner and to provide security in an amount equal to one
hundred percent (100%) of the assuming insurer's liabilities to
the ceding insurer should the assuming insurer enter into such a
solvent scheme of arrangement. Such security shall be in a form
consistent with the provisions of paragraph (vi) of this
subsection, W.S. 26-5-113 and rules adopted by the commissioner.
(E) The assuming insurer or its legal successor
shall provide, if requested by the commissioner, on behalf of
itself and any legal predecessors, documentation to the
commissioner as specified by rules adopted by the commissioner;
(F) The assuming insurer shall maintain a
practice of prompt payment of claims under reinsurance
agreements pursuant to criteria set forth in rules adopted by
the commissioner;
(G) The assuming insurer's supervisory authority
shall confirm to the commissioner on an annual basis, as of the
preceding December 31 or at the annual date otherwise
statutorily reported to the reciprocal jurisdiction, that the
assuming insurer complies with the requirements set forth in
subparagraphs (B) and (C) of this paragraph;
(H) Nothing in this paragraph precludes an
assuming insurer from providing the commissioner with
information on a voluntary basis;
(J) The commissioner shall timely create and
publish a list of reciprocal jurisdictions. The commissioner's
list shall include any reciprocal jurisdiction as defined under
subparagraphs (j)(ii)(A) and (B) of this section and the
commissioner shall consider adding any other reciprocal
jurisdiction included on the NAIC list of reciprocal
jurisdictions published through the NAIC committee process. The
commissioner may approve a jurisdiction as a reciprocal
jurisdiction that does not appear on the NAIC list of reciprocal
jurisdictions in accordance with criteria specified in rules
adopted by the commissioner. The commissioner may remove a
jurisdiction from the list of reciprocal jurisdictions upon a
determination that the jurisdiction no longer meets the
requirements of a reciprocal jurisdiction, in accordance with a
process set forth in rules adopted by the commissioner, except
that the commissioner shall not remove from the list a
reciprocal jurisdiction as defined under subparagraph (j)(ii)(A)
or (B) of this section. Upon removal of a reciprocal
jurisdiction from this list, credit for reinsurance ceded to an
assuming insurer which has its home office or is domiciled in
that jurisdiction shall be allowed if otherwise allowed pursuant
to this chapter;
(K) The commissioner shall timely create and
publish a list of assuming insurers that have satisfied all
conditions set forth in this paragraph and to which cessions
shall be granted credit in accordance with this subsection. The
commissioner may add an assuming insurer to the list if an NAIC
accredited jurisdiction has added the assuming insurer to a list
of such assuming insurers or if, upon initial eligibility, the
assuming insurer submits the information to the commissioner as
required under subparagraph (D) of this paragraph and complies
with any additional requirements that the commissioner may
impose by rule, except to the extent that they conflict with an
applicable covered agreement;
(M) If the commissioner determines that an
assuming insurer no longer meets one (1) or more of the
requirements under this paragraph, the commissioner may revoke
or suspend the eligibility of the assuming insurer for
recognition under this paragraph in accordance with procedures
set forth in rules adopted by the commissioner. While an
assuming insurer's eligibility is suspended, no reinsurance
agreement issued, amended or renewed after the effective date of
the suspension qualifies for credit except to the extent that
the assuming insurer's obligations under the contract are
secured in accordance with W.S. 26-5-113. If an assuming
insurer's eligibility is revoked, no credit for reinsurance may
be granted after the effective date of the revocation with
respect to any reinsurance agreements entered into by the
assuming insurer, including reinsurance agreements entered into
prior to the date of revocation, except to the extent that the
assuming insurer's obligations under the contract are secured in
a form acceptable to the commissioner and consistent with the
provisions of W.S. 26-5-113;
(N) If subject to a legal process of
rehabilitation, liquidation or conservation, as applicable, the
ceding insurer or its representative may seek and, if determined
appropriate by the court in which the proceedings are pending,
may obtain an order requiring that the assuming insurer post
security for all outstanding ceded liabilities;
(O) Nothing in this paragraph shall limit or in
any way alter the capacity of parties to a reinsurance agreement
to agree on requirements for security or other terms in that
reinsurance agreement, except as expressly prohibited by this
chapter or other applicable law or rule;
(P) Credit may be taken under this paragraph
only for reinsurance agreements entered into, amended, or
renewed on or after July 1, 2021 and only with respect to losses
incurred and reserves reported on or after the later of the date
on which the assuming insurer has met all eligibility
requirements of this paragraph and the effective date of the new
reinsurance agreement, amendment or renewal. This subparagraph
does not alter or impair a ceding insurer's right to take credit
for reinsurance, to the extent that credit is not available
under this paragraph, as long as the reinsurance qualifies for
credit under any other applicable provision of this chapter;
(Q) Nothing in this paragraph shall authorize an
assuming insurer to withdraw or reduce the security provided
under any reinsurance agreement except as permitted by the terms
of the agreement;
(R) Nothing in this paragraph shall limit, or in
any way alter, the capacity of parties to any reinsurance
agreement to renegotiate the agreement.
(b) A trust under paragraph (a)(v) of this section shall
be established in a form approved by the commissioner. The
trust instrument shall provide that contested claims shall be
valid and enforceable upon the final order of any court of
competent jurisdiction in the United States. The trust shall
vest legal title to its assets in the trustees of the trust for
its United States policyholders and ceding insurers, their
assigns and successors in interest. The trust and the assuming
insurer shall be subject to examination as determined by the
commissioner. The trust described herein shall remain in effect
for as long as the assuming insurer shall have outstanding
obligations due under the reinsurance agreements subject to the
trust. No later than February 28 of each year the trustees of
the trust shall report to the commissioner in writing setting
forth the balance of the trust and listing the trust's
investments at the preceding year end and shall certify the date
of termination of the trust, if so planned, or certify that the
trust shall not expire prior to the next following December 31.
(c) If the assuming insurer is not licensed, certified or
accredited to transact insurance or reinsurance in this state,
the credit permitted by paragraphs (a)(iii) and (v) of this
section shall not be allowed unless the assuming insurer agrees
in the reinsurance agreements:
(i) That in the event of the failure of the assuming
insurer to perform its obligations under the terms of the
reinsurance agreement, the assuming insurer, at the request of
the ceding insurer, shall submit to the jurisdiction of any
court of competent jurisdiction in any state of the United
States, shall comply with all requirements necessary to give the
court jurisdiction, and shall abide by the final decision of the
court or of any appellate court in the event of an appeal; and
(ii) To designate the commissioner as its true and
lawful attorney upon whom may be served any lawful process in
any action, suit or proceeding instituted by or on behalf of the
ceding insurer.
(d) Subsection (c) of this section shall not supersede the
obligation of the parties to a reinsurance agreement to
arbitrate their disputes, if such an obligation is created in
the agreement.
(e) If an accredited or certified reinsurer ceases to meet
the requirements for accreditation or certification, the
commissioner may suspend or revoke the reinsurer's accreditation
or certification in accordance with the following:
(i) The commissioner shall give the reinsurer notice
and opportunity for hearing. The suspension or revocation shall
not take effect until after the commissioner's order on hearing,
unless:
(A) The reinsurer waives its right to a hearing;
(B) The commissioner's order is based on
regulatory action by the reinsurer's domiciliary jurisdiction or
the voluntary surrender or termination of the reinsurer's
eligibility to transact insurance or reinsurance business in its
domiciliary jurisdiction or in the primary certifying state of
the reinsurer under subparagraph (a)(vi)(F) of this section; or
(C) The commissioner finds that an emergency
requires immediate action and a court of competent jurisdiction
has not stayed the commissioner's action.
(ii) While a reinsurer's accreditation or
certification is suspended, no reinsurance contract issued or
renewed after the effective date of the suspension qualifies for
credit except to the extent that the reinsurer's obligations
under the contract are secured in accordance with W.S. 26-5-113.
If a reinsurer's accreditation or certification is revoked, no
credit for reinsurance may be granted after the effective date
of the revocation except to the extent that the reinsurer's
obligations under the contract are secured in accordance with
subparagraph (a)(vi)(E) of this section or W.S. 26-5-113.
(f) A ceding insurer shall take steps to manage its
reinsurance recoverables proportionate to its own book of
business. A domestic ceding insurer shall notify the
commissioner within thirty (30) days after reinsurance
recoverables from any single assuming insurer or group of
affiliated assuming insurers exceeds fifty percent (50%) of the
domestic ceding insurer's last reported surplus to
policyholders, or after it is determined that reinsurance
recoverables from any single assuming insurer or group of
affiliated assuming insurers is likely to exceed this limit. The
notification shall demonstrate that the exposure is safely
managed by the domestic ceding insurer.
(g) A ceding insurer shall take steps to diversify its
reinsurance program. A domestic ceding insurer shall notify the
commissioner within thirty (30) days after ceding to any single
assuming insurer or group of affiliated assuming insurers more
than twenty percent (20%) of the ceding insurer's gross written
premium in the prior calendar year, or after it has determined
that the reinsurance ceded to any single assuming insurer or
group of affiliated assuming insurers is likely to exceed this
limit. The notification shall demonstrate the exposure is safely
managed by the domestic ceding insurer.
(h) Credit for reinsurance ceded to a certified reinsurer
is limited to reinsurance contracts entered or renewed on or
after the effective date of the certification of the assuming
insurer by the commissioner.
(j) As used in this section:
(i) "Covered agreement" means an agreement entered
into pursuant to the Dodd-Frank Wall Street Reform and Consumer
Protection Act, 31 U.S.C. §§ 313 and 314, that is currently in
effect or in a period of provisional application and that
addresses the elimination, under specified conditions, of
collateral requirements as a condition for entering into any
reinsurance agreement with a ceding insurer domiciled in this
state or for allowing the ceding insurer to recognize credit for
reinsurance;
(ii) "Reciprocal jurisdiction" means any of the
following:
(A) A non-United States jurisdiction that is
subject to an in-force covered agreement with the United States,
each within its legal authority, or, in the case of a covered
agreement between the United States and the European Union, is a
member state of the European Union;
(B) A United States jurisdiction that meets the
requirements for accreditation under the NAIC financial
standards and accreditation program;
(C) A qualified jurisdiction, as determined by
the commissioner pursuant to subparagraph (a)(vi)(C) of this
section, that is not otherwise described in subparagraphs (A) or
(B) of this paragraph and that meets certain additional
requirements, consistent with the terms and conditions of in-
force covered agreements, as specified in rules adopted by the
commissioner.