Raised Bill No. 338 Summary

• Effective October 1, 2020, revises Connecticut General Statutes Section 38a-85 to reorganize and expand the criteria for allowing domestic ceding insurers credit for reinsurance ceded to assuming insurers.

• Adds a new subsection (g) establishing a "reciprocal jurisdiction" framework allowing credit for reinsurance ceded to assuming insurers domiciled in non-U.S. jurisdictions with covered agreements with the United States or in NAIC-accredited U.S. jurisdictions, subject to minimum capital and surplus requirements and regulatory oversight.

• Requires assuming insurers in reciprocal jurisdictions to maintain minimum solvency ratios, submit to Connecticut jurisdiction and examination, provide security if resisting judgment enforcement, and notify the commissioner of regulatory violations or participation in solvent schemes of arrangement.

• Directs the Insurance Commissioner to create and publish lists of reciprocal jurisdictions and eligible assuming insurers, with authority to suspend or revoke eligibility if insurers no longer meet requirements.

• Requires domestic ceding insurers to manage reinsurance recoverables and diversify reinsurance programs, notifying the commissioner within 30 days if concentrations with single assuming insurers exceed specified thresholds (50% of surplus for recoverables, 20% of gross written premiums).