SB 87 Summary: Credit for Reinsurance

• Amends Alaska insurance law to add a new category (6) of reinsurance credit eligibility for assuming insurers in reciprocal jurisdictions, requiring minimum capital and surplus, solvency ratios, jurisdiction consent, and prompt claim payment practices.

• Defines "reciprocal jurisdiction" as non-U.S. jurisdictions with covered agreements under the Dodd-Frank Act (including EU member states), U.S. jurisdictions meeting National Association of Insurance Commissioners accreditation standards, or qualified jurisdictions approved by the director.

• Requires the director to create and publish lists of reciprocal jurisdictions and eligible assuming insurers, with authority to approve jurisdictions not on the National Association of Insurance Commissioners list upon documented justification.

• Modifies regulations for specialized reinsurance arrangements to exclude certified reinsurers and those meeting specific capital thresholds ($250,000,000 minimum) and state licensing requirements from certain security requirements.

• Requires the director to adopt implementing regulations under the Administrative Procedure Act, with Section 5 taking effect immediately.