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Nov. 8, 2007
Reinsurance Regulatory Modernization Framework Memorandum
Mutual Recognition
A new NAIC entity called the Reinsurance Supervision Review Department (RSRD) would be established. Assessing regulatory effectiveness through an “outcomes-oriented” approach, the RSRD would determine which non-U.S. jurisdictions are entitled to enter into mutual recognition agreements.
Single State U.S. Regulator – U.S. Reinsurers
To avoid inappropriate extraterritorial regulation, a domestic reinsurer may access the U.S. market upon certification by its state of domicile or another appropriate U.S. regulator. Uniform minimum standards would be established for a company to qualify for certification, and for a state to qualify to be recognized as a reinsurer’s single state regulator.
Single State U.S. Regulator – Non-U.S. Reinsurers
A non-U.S. reinsurer from an RSRD-approved jurisdictions could be certified to access the U.S. market through one jurisdiction, referred to as the reinsurer’s “port of entry.” Again, the process would be governed by uniform minimum standards.
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