HB 1936 Summary

• Repeals and re-enacts section 375.246, RSMo, regarding credit for reinsurance ceded by domestic insurers to assuming insurers.

• Modifies accreditation requirements for reinsurers by adding a new tier (subdivision 5) for "certified reinsurers" with reduced security requirements based on financial strength ratings and regulatory approval.

• Establishes qualification criteria for certified reinsurers including minimum capital and surplus amounts determined by director rule, financial strength ratings from acceptable rating agencies, and submission to Missouri jurisdiction.

• Allows domestic insurers to take credit for reinsurance with certified reinsurers that maintain security levels consistent with their director-assigned ratings, rather than requiring full 100 percent security.

• Changes the effective date for application of reinsurance credit requirements from December 31, 2002 to December 31, 2012, and clarifies that credit allowances must comply with statutory accounting principles adopted by the National Association of Insurance Commissioners.