Certified Reinsurers

ReFAWG Mission

ReFAWG operates in Executive Session, in accordance with the NAIC Policy Statement on Open Meetings. The purpose of ReFAWG is to provide advisory support and assistance to states in the review of applications for reinsurance collateral reduction. Such a process with respect to the review of applications for reinsurance collateral reduction and qualified jurisdictions should strengthen state regulation and prevent regulatory arbitrage.

The authority to issue individual collateral reductions to reinsurers is reserved to the NAIC member jurisdictions under their respective statutes and regulations. While this forum is intended to strengthen state regulation and prevent regulatory arbitrage, it is not within the authority of ReFAWG to assign collateral requirements for individual reinsurers.

Uniform Application Checklist and Certification of Reinsurers

ReFAWG makes available to the states a uniform application for certification of reinsurers based upon the requirements of the NAIC Credit for Reinsurance Model Law (Model #785) and Credit for Reinsurance Model Regulation (Model #786)It is the intent of ReFAWG that states use this Checklist in an effort to ensure that a reinsurer's application for certification is complete, based on the requirements of this regulation.

Assuming insurers are encouraged to submit initial applications to a single state in order to allow the application to be considered through the ReFAWG process and in an effort to facilitate multi-state recognition of a certification ("passporting"). As a general procedure, this state would be considered the lead state for the purpose of initiating the passporting process.

Passporting Process

If an applicant for certification has been certified as a reinsurer in an NAIC accredited jurisdiction, other states have the discretion to defer to that jurisdiction's certification, and to defer to the collateral level assigned by that jurisdiction. ReFAWG will help facilitate passporting of certified reinsurers and address issues of uniformity among the states with respect to certification and assignment of collateral levels by the states.

When applying for passporting, a certified reinsurer must submit a properly executed Form CR-1 and additional information as the Commissioner/Director may require. A state that has received an application for passporting will notify ReFAWG and provide relevant information with respect to the application. The NAIC will assist in providing access to information filed by the lead state related to their certification of the reinsurer. An application for passporting may be submitted at any time.

Through the confidential review process, ReFAWG will make a recommendation to NAIC member jurisdictions whether to approve or deny a certified reinsurer's application for passporting. Ultimately, states have the discretion to defer to the certification and collateral reduction of a reinsurer assigned by the lead state.

Process for Ongoing Monitoring of Certified Reinsurers

ReFAWG will facilitate communication among NAIC member jurisdictions with respect to information that potentially impacts a certified reinsurer's status. Model #786 provides that a certified reinsurer is required to notify the Commissioner/Director of a certifying state within 10 days of any regulatory actions taken against the certified reinsurer, any change in the provisions of its domiciliary license or any change in financial strength or credit rating by an approved rating agency, including a statement describing such changes and the reasons therefor. 

Certified reinsurers are required to file specific information to a certifying state on an ongoing basis for annual renewals. NAIC staff and ReFAWG will review this information in an effort to assist states with the ongoing monitoring of certified reinsurers. Certified reinsurers will be required to file all necessary documents with the lead state in conjunction with the re-certification review process, based on the following timeline:

 

Timeline Event

Required Date*

Required Certified Reinsurer Documents Filed with Lead State

June 30

Required Passporting Documents Uploaded to NAIC ReFAWG FTP

August 31

NAIC Staff Re-Certification Review Process and Conference Calls

September 1 – November 30

All Passporting Re-Certifications Completed

December 1

Effective Date of Passporting Re-Certification

1/1/xx to 12/31/xx (Next Calendar Year)

* For certified reinsurers that file financial data on a fiscal year basis, adjustments to the timeline will be made on a case-by-case basis.

 

Results of ReFAWG Review

It is not within the authority of ReFAWG to assign collateral requirements for individual reinsurers. The authority to issue collateral requirements of certified reinsurers is reserved to the NAIC member jurisdictions under their respective statutes and regulations. Therefore, ReFAWG will not publish any written report on its evaluation or findings with respect to a certified reinsurer, nor will it publish any list of certified reinsurers/collateral requirements based on the ReFAWG review process. However, ReFAWG will make a recommendation to the NAIC member jurisdictions to approve or deny a reinsurer for certification or passporting based on whether it appears to fulfill the criteria set forth in Models #785 and #786. The ReFAWG process is designed to facilitate communication of relevant information with respect to individual reinsurers or reinsurance-related issues by allowing interested state insurance regulators the opportunity to monitor the ReFAWG meetings and discussion.

Listing Certified Reinsurers

The NAIC has compiled a list of the NAIC member jurisdiction webpages containing the listing of certified reinsurers. This is intended for informational purposes only to facilitate accurate reporting of reinsurance transactions within the statutory financial statements.

   

Listing of Certified Reinsurers Recommended for Passporting

Included in the link below is a list of all certified reinsurers that have been reviewed by ReFAWG and recommended for Passporting.

The information contained on this webpage is for informational purposes only, and is not intended as a guarantee or endorsement by the NAIC of the financial condition or stability of any certified reinsurer recommended for passporting. The regulatory authority to approve a certified reinsurer resides solely in each state, and the Listing of Certified Reinsurers Recommended for Passporting is not binding on the states.

Certified Reinsurers Recommended for Passporting