DE HB46

Grants the Commissioner authority 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, long-term care insurance, and other NAIC-identified products.

Applies new regulatory requirements to treaties containing policies issued on or after January 1, 2024, or any pre-2024 policies where risk is ceded on or after January 1, 2024.

Requires ceding insurers to use the NAIC Valuation Manual, including all amendments in effect at the time of calculation, when determining security amounts under the new regulations.

Exempts assuming insurers meeting certain conditions from the new regulations, including those meeting § 911(6) requirements, certified in Delaware under § 911(5), or maintaining at least $250 million in capital and surplus while licensed in at least 26 states or licensed in 10+ states and accredited in 35+ states total.

Reflects National Association of Insurance Commissioners revisions to the Model Credit for Reinsurance Act to address reinsurance agreements with insurer-affiliated captives and special purpose vehicles.