CA AB2049

Extends credit for reinsurance to domestic insurers when ceded to assuming insurers domiciled and licensed in "reciprocal jurisdictions" meeting specified solvency and capital requirements, without requiring collateral in certain circumstances.

Reciprocal jurisdictions include non-U.S. jurisdictions with in-force covered agreements with the United States, NAIC-accredited U.S. jurisdictions, or other qualified jurisdictions meeting additional regulatory requirements for solvency, group supervision recognition, and information sharing.

Requires assuming insurers in reciprocal jurisdictions to maintain minimum capital and surplus of $250 million, maintain solvency ratios as specified, provide annual confirmation of compliance, and agree to jurisdiction of California courts and enforcement of final judgments.

Reduces documentation requirements for assuming insurers ceding to certified reinsurers from 3 years of audited financial statements to 2 years upon initial certification, and requires English translations of all submitted financial documents.

Requires the commissioner to create and publish lists of reciprocal jurisdictions and assuming insurers eligible for reinsurance credit under the new provisions, effective for reinsurance agreements entered into, amended, or renewed on or after January 1, 2021.