SB 3080 Summary

• Adopts 2019 amendments to the National Association of Insurance Commissioners' Credit for Reinsurance Model Law to comply with bilateral insurance agreements between the United States and European Union and United Kingdom.

• Establishes new "reciprocal jurisdiction" category for reinsurers domiciled in covered agreement jurisdictions, eliminating collateral requirements for qualifying assuming insurers meeting specified financial and regulatory standards.

• Creates certification pathway for assuming insurers in qualified jurisdictions, requiring minimum capital and surplus levels, financial strength ratings, and regulatory oversight from domiciliary jurisdiction.

• Requires ceding insurers to notify the commissioner when reinsurance recoverables from a single assuming insurer exceed 50% of surplus or when cessions exceed 20% of gross written premium.

• Applies new rules for reinsurance of life insurance with guaranteed nonlevel premiums, universal life with secondary guarantees, variable annuities with guaranteed benefits, and long-term care insurance issued on or after January 1, 2015.