Reinsurance (E) Task Force
September 29, 2007

The Reinsurance Task Force of the Financial Condition (E) Committee met on Saturday, September 29, 2007.

During this meeting, the Reinsurance Task Force:

• Received a summary of the reinsurance regulatory modernization proposal. As part of amending the reinsurance regulatory framework, U.S. insurance regulators are proposing to develop a system which would allow for the following:

• Regulatory Equivalence – Mutual Recognition
• Reinsurance Supervision Review Department (RSRD) would determine which jurisdictions are “functionally equivalent” to U.S. regulation.
• Single State U.S. Regulator – U.S. Reinsurers
• Domestic reinsurers would submit to one jurisdiction in order to access the U.S. market (minimum criteria established to qualify for single state regulatory approach)
• Port of Entry – Non-U.S. Reinsurers
• Non-U.S. reinsurers from approved jurisdictions would be certified to access the U.S. market through one jurisdiction.

This reinsurance regulatory modernization proposal would provide a framework for mutual recognition between the U.S. and non-U.S. jurisdictions. The RSRD would establish principles concerning regulatory equivalence. The Task Force received a number of comments from interested parties concerning the regulatory modernization proposal.

Action Items:

• The Task Force adopted the 2008 charges.

• Additional comments will be received concerning the reinsurance regulatory modernization proposal until October 19, 2007.

• The Task Force will hold an interim meeting in conjunction with the NAIC Financial Summit in Atlanta, GA on the afternoon of Nov. 7 and the entire day of Nov. 8.

With no further items, the meeting was adjourned.