NC H150

Revises credit for reinsurance laws to maintain NAIC accreditation of the North Carolina Department of Insurance, adding a new reciprocal jurisdiction provision allowing credit when reinsurance is ceded to assuming insurers domiciled in reciprocal jurisdictions that meet specified capital, solvency, and regulatory requirements.

Establishes minimum capital and surplus requirements of $250,000,000 for assuming insurers in reciprocal jurisdictions and requires assuming insurers to consent to North Carolina court jurisdiction, provide notice of regulatory actions, and maintain prompt claim payment practices.

Creates a new section governing reserve financing for term life insurance and universal life insurance policies with secondary guarantees, requiring ceding insurers to hold primary security (cash, eligible securities, commercial loans, policy loans, or derivatives) equal to amounts determined by VM-20 actuarial methods.

Defines covered policies subject to reserve financing requirements and establishes exemptions for certain policy types (credit life, variable life, group life certificates, policies issued before January 1, 2015, and policies ceded to highly-capitalized or certified reinsurers).

Effective September 1, 2021, applying to all covered policies entered into, amended, or renewed on or after that date; requires ceding insurers to perform quarterly or annual analyses to ensure security requirements are satisfied and prohibits actions taken to circumvent the law's requirements.