IL SB2864

Amends Illinois Insurance Code Section 173.1 to establish new categories of reinsurers eligible for credit, including accredited reinsurers, certified reinsurers, and those meeting standards substantially similar to Illinois requirements.

Creates a certified reinsurer category requiring domiciliation in a qualified jurisdiction, maintenance of minimum capital and surplus, financial strength ratings from acceptable agencies, submission to Illinois jurisdiction, and provision of security for 100% of liabilities to U.S. ceding insurers.

Establishes criteria for qualified jurisdictions by evaluating reinsurance supervisory systems, reciprocal recognition afforded to U.S. reinsurers, and ability to enforce final U.S. judgments; allows U.S. jurisdictions meeting NAIC accreditation standards to be automatically recognized as qualified.

Adds concentration of risk provisions requiring domestic ceding insurers to notify the Director within 30 days when reinsurance recoverables from a single assuming insurer or affiliated group exceed 50% of surplus, or when ceding to a single insurer exceeds 20% of gross written premiums.

Implements procedures for suspension or revocation of accreditation or certification with notice and hearing requirements, and allows reduced security requirements for certified reinsurers with higher ratings consistent with their financial strength.