SF 3241 Summary

• Creates a new certification process for reinsurers in qualified jurisdictions as an alternative to existing accreditation and trust fund requirements, allowing reduced security requirements based on commissioner-assigned ratings.

• Establishes rating system (Secure-1 through Vulnerable-6) for certified reinsurers with corresponding security requirements ranging from 0% to 100%, based on financial strength ratings from approved agencies.

• Requires certified reinsurers to maintain minimum $250,000,000 in capital and surplus, submit to Minnesota jurisdiction, provide annual financial reports, and comply with ongoing filing and notification requirements.

• Modifies existing reinsurance credit requirements by distinguishing between licensed/accredited insurers and new certified reinsurers, with specific provisions for trust funds, letters of credit, and concentration risk management.

• Effective January 1, 2019 for new reinsurance contracts, with transition period allowing existing letters of credit to remain acceptable until December 31, 2019.