HB 6392 Summary

• Effective October 1, 2021, restructures Connecticut's reinsurance credit requirements by adding a new subsection (g) allowing credit for reinsurance ceded to assuming insurers domiciled in "reciprocal jurisdictions" with specified capital, solvency, and security requirements.

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

• Requires assuming insurers in reciprocal jurisdictions to maintain minimum capital and surplus per domiciliary jurisdiction methodology, minimum solvency ratios, consent to court jurisdiction, and provide 100% security if resisting enforcement of final judgments or entering into solvent schemes of arrangement.

• Mandates annual supervisory confirmation of compliance with capital and solvency requirements; allows commissioner to suspend or revoke eligibility if standards no longer met.

• Amends sections 38a-25, 38a-88, and 38a-92m to reflect the new reciprocal jurisdiction framework and specifies that new regulations do not apply to certain certified reinsurers or those maintaining $250 million in capital and surplus.