MS HB408

Adds a new category (f) to Section 83-19-151 allowing credit for reinsurance ceded to assuming insurers domiciled in "Reciprocal Jurisdictions" without requiring collateral, defined as non-U.S. jurisdictions with in-force covered agreements with the United States, U.S. jurisdictions meeting NAIC accreditation standards, or qualified jurisdictions meeting additional commissioner-specified requirements.

Requires assuming insurers in Reciprocal Jurisdictions to maintain minimum capital and surplus, minimum solvency ratios, prompt claims payment practices, and provide written notice if they fall below minimums or face regulatory action; reinsurance agreements must include provisions for 100% security if the assuming insurer resists enforcement of final judgments.

Directs the commissioner to create and publish lists of Reciprocal Jurisdictions and eligible assuming insurers, with authority to suspend or revoke eligibility if an insurer no longer meets requirements.

Establishes concentration risk management requirements for domestic ceding insurers to notify the commissioner within 30 days if reinsurance recoverables from a single assuming insurer exceed 50% of surplus or if ceding to a single insurer exceeds 20% of gross written premiums.

Amends Section 83-19-157 to exclude certain high-capital assuming insurers from new regulatory requirements for life insurance and annuity reinsurance, and establishes the effective date as July 1, 2020.