Reinsurance credits; conforms State's law to Credit for Reinsurance Model Law of NAIC. (HB1139)
Introduced By
Progress
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Introduced |
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Passed Committee |
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Passed House |
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Passed Senate |
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Signed by Governor |
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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 The existing provision regarding credits allowed a foreign or alien ceding insurer are repealed because the NRRA prohibits a state from denying credit for reinsurance if the domiciliary state of a ceding insurer recognizes such credit and is either an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
History
Date | Action |
---|---|
01/13/2012 | Committee |
01/13/2012 | Presented and ordered printed 12101432D |
01/13/2012 | Referred to Committee on Commerce and Labor |
01/24/2012 | Reported from Commerce and Labor with amendments (21-Y 0-N) (see vote tally) |
01/26/2012 | Read first time |
01/27/2012 | Read second time |
01/27/2012 | Committee amendments agreed to |
01/27/2012 | Engrossed by House as amended HB1139E |
01/27/2012 | Printed as engrossed 12101432D-E |
01/29/2012 | Impact statement from SCC (HB1139) |
01/30/2012 | Read third time and passed House BLOCK VOTE (99-Y 0-N) |
01/30/2012 | VOTE: BLOCK VOTE PASSAGE (99-Y 0-N) (see vote tally) |
01/31/2012 | Constitutional reading dispensed |
01/31/2012 | Referred to Committee on Commerce and Labor |
02/06/2012 | Impact statement from SCC (HB1139E) |
02/20/2012 | Reported from Commerce and Labor (16-Y 0-N) (see vote tally) |
02/22/2012 | Constitutional reading dispensed (39-Y 0-N) (see vote tally) |
02/23/2012 | Read third time |
02/23/2012 | Passed Senate (40-Y 0-N) (see vote tally) |
02/29/2012 | Enrolled |
02/29/2012 | Bill text as passed House and Senate (HB1139ER) |
02/29/2012 | Impact statement from SCC (HB1139ER) |
02/29/2012 | Signed by Speaker |
03/01/2012 | Signed by President |
04/04/2012 | G Approved by Governor-Chapter 539 (effective 7/1/12) |
04/04/2012 | G Acts of Assembly Chapter text (CHAP0539) |