CA SB1216

Authorizes the Insurance Commissioner to designate insurers admitted and domiciled in California as "professional reinsurers" if they are principally engaged in reinsurance, do not conduct significant direct insurance, and are not actively soliciting direct insurance.

Requires domestic ceding insurers to notify the Commissioner within 30 days when reinsurance recoverables from a single assuming insurer exceed 50% of surplus, or when more than 20% of gross written premiums are ceded to a single assuming insurer.

Revises accredited reinsurer standards to require demonstration of adequate financial capacity to meet reinsurance obligations, with assuming insurers maintaining at least $20,000,000 in surplus deemed to meet the requirement unless accreditation is denied within 90 days.

Establishes a new "certified reinsurer" classification (effective until January 1, 2016) for non-admitted assuming insurers domiciled in qualified jurisdictions, with Commissioner-assigned security requirements based on financial strength ratings and other criteria.

Modifies credit for reinsurance provisions for foreign ceding insurers to recognize credit allowed by their domestic state regulator if that state is NAIC-accredited or has substantially similar financial solvency requirements.