DE HB346

Establishes new criteria for domestic insurers to receive credit for reinsurance ceded to assuming insurers, including requirements for licensed, accredited, or certified reinsurers with minimum surplus thresholds of $20 million for single reinsurers

Creates a certification process for reinsurers from "qualified jurisdictions" that meet financial strength ratings and capital requirements, allowing reduced collateral requirements based on assigned ratings from the Commissioner

Requires certified reinsurers to maintain trust funds, letters of credit, or other security for obligations to U.S. ceding insurers, with minimum trusteed surplus of $10 million for multibeneficiary trusts

Imposes concentration risk management requirements, mandating domestic insurers notify the Commissioner within 30 days if reinsurance recoverables from a single reinsurer exceed 50% of surplus or if cessions exceed 20% of gross written premium

Applies to all reinsurance cessions under agreements with inception, anniversary, or renewal dates at least 6 months after the Act's effective date, implementing changes required by the federal Nonadmitted and Reinsurance Reform Act of 2010