Reinsurance credits; conforms State's law to Credit for Reinsurance Model Law of NAIC. (HB1139)

Introduced By

Del. Lee Ware (R-Powhatan)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Reinsurance credits.  Conforms Virginia's law regarding credits to insurers for reinsurance ceded to approved assuming insurers to the provisions of the Credit for Reinsurance Model Law of the National Association of Insurance Commissioner (NAIC). Conformity to the Model complies with provisions of the federal Nonadmitted and Reinsurance Reform Act (NRRA), which permits states to proceed with reinsurance collateral reforms on an individual basis if they are accredited under the NAICs Financial Regulation Standards and Accreditation Program. Provisions establish (i) how an accredited reinsurer may demonstrate to the State Corporation Commission that it has adequate financial capacity to meet its reinsurance obligations; (ii) the requirements for a reduction in the required trusteed surplus; (iii) the requirements for credit for reinsurance to be allowed when the reinsurance is ceded to a certified reinsurer; (iv) eligibility requirements for becoming a certified reinsurer; (v) the Commission's authority to suspend or revoke a reinsurer's accreditation or certification, (vi) requirements for ceding insurers to manage their concentration risk and to diversify their reinsurance program, (vii) criteria for securities that an assuming insurer may hold in trust as security for the payment of the ceding insurer's obligations, and (viii) trusteed surplus requirements for multiple beneficiary trust accounts. The existing provision regarding credits allowed a foreign or alien ceding insurer are repealed because the NRRA prohibits a state from denying credit for reinsurance if the domiciliary state of a ceding insurer recognizes such credit and is either an NAIC-accredited state or has financial solvency requirements substantially similar to the NAIC accreditation requirements. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
01/13/2012Committee
01/13/2012Presented and ordered printed 12101432D
01/13/2012Referred to Committee on Commerce and Labor
01/24/2012Reported from Commerce and Labor with amendments (21-Y 0-N) (see vote tally)
01/26/2012Read first time
01/27/2012Read second time
01/27/2012Committee amendments agreed to
01/27/2012Engrossed by House as amended HB1139E
01/27/2012Printed as engrossed 12101432D-E
01/29/2012Impact statement from SCC (HB1139)
01/30/2012Read third time and passed House BLOCK VOTE (99-Y 0-N)
01/30/2012VOTE: BLOCK VOTE PASSAGE (99-Y 0-N) (see vote tally)
01/31/2012Constitutional reading dispensed
01/31/2012Referred to Committee on Commerce and Labor
02/06/2012Impact statement from SCC (HB1139E)
02/20/2012Reported from Commerce and Labor (16-Y 0-N) (see vote tally)
02/22/2012Constitutional reading dispensed (39-Y 0-N) (see vote tally)
02/23/2012Read third time
02/23/2012Passed Senate (40-Y 0-N) (see vote tally)
02/29/2012Enrolled
02/29/2012Bill text as passed House and Senate (HB1139ER)
02/29/2012Impact statement from SCC (HB1139ER)
02/29/2012Signed by Speaker
03/01/2012Signed by President
04/04/2012G Approved by Governor-Chapter 539 (effective 7/1/12)
04/04/2012G Acts of Assembly Chapter text (CHAP0539)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 2 minutes.