CA AB938

Authorizes the California Insurance Commissioner to adopt regulations for reinsurance arrangements involving life insurance policies with guaranteed nonlevel premiums or benefits, universal life insurance with secondary guarantees, variable annuities with guaranteed benefits, and long-term care insurance policies.

Requires any regulations adopted under this authority to be based on and consistent with current National Association of Insurance Commissioners (NAIC) model regulations, unless conflicting with other provisions of the Insurance Code.

Grants the Commissioner authority to establish specific requirements for valuation of assets or reserve credits, amount and forms of security for reinsurance arrangements, and circumstances for reducing or eliminating reinsurance credits.

Exempts assuming insurers meeting certain criteria from new regulations, including those certified in California or five other states, or maintaining at least $250 million in capital and surplus while licensed in at least 26 states (or 10 states plus accredited in 25 additional states).

Took effect immediately upon Governor approval on September 1, 2017, as an urgency statute.