Senate Bill 299 Summary

• Revises North Carolina insurance laws governing credit for reinsurance to maintain the Department of Insurance's NAIC accreditation, including modifications to certified reinsurer requirements and provisions for reciprocal jurisdiction reinsurers.

• Establishes a new reciprocal jurisdiction framework allowing credit for reinsurance ceded to assuming insurers domiciled in jurisdictions with covered agreements or NAIC accreditation, with minimum capital requirements of $250,000,000 and specified solvency ratios.

• Creates new regulations for term and universal life insurance reserve financing, requiring primary security (cash and NAIC-listed securities) to be held equal to amounts calculated using the VM-20 actuarial method, with effective date of September 1, 2021.

• Exempts certain life insurance policies from reserve financing requirements, including grandfathered policies issued before January 1, 2015, credit life insurance, and policies with secondary guarantee periods of five years or less meeting specified premium requirements.

• Requires life insurance companies to perform quarterly and annual analyses to verify primary security requirements are met for each reinsurance treaty with covered policies, establishing liabilities for any deficiencies discovered.