Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the commissioner's powers and duties. Existing law requires an insurer to file financial statements with the commissioner. For purposes of those financial statements, existing law authorizes a domestic insurer to take a credit for reinsurance if the reinsurance is ceded to an assuming insurer that has been certified by the commissioner as a reinsurer in this state and the insurer secures its obligations in accordance with certain requirements.
This bill would extend credit for reinsurance when the reinsurance is ceded to an assuming insurer that has its head office or is domiciled in and is licensed in a reciprocal jurisdiction if specified requirements are met, including solvency requirements and specified assurances from the assuming insurer. The bill would require the commissioner to timely create and publish a list of reciprocal jurisdictions and a list of assuming insurers receiving a credit with a head office or domicile in and that are licensed in a reciprocal jurisdiction. The bill would require a certified reinsurer to file with the commissioner audited financial statements, regulatory filings, and actuarial opinion as filed with a non-United States jurisdiction and with a translation into English, and would authorize the commissioner to consider those documents to evaluate the reinsurer's financial strength.

Statutes affected:
AB2049: 922.4 INS, 922.41 INS, 922.43 INS, 922.85 INS
02/03/20 - Introduced: 922.4 INS, 922.41 INS, 922.43 INS, 922.85 INS
03/02/20 - Amended Assembly: 922.4 INS, 922.41 INS, 922.43 INS, 922.85 INS
AB 2049: 922.4 INS, 922.41 INS, 922.43 INS, 922.85 INS