United States:
Idaho, South Carolina, And Tennessee Update Credit For Reinsurance Laws
21 June 2018
Carlton Fields
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South Carolina and Tennessee updated their respective credit for
reinsurance statutes consistent with NAIC Credit for Reinsurance
Model Law 785. Idaho and Tennessee adopted the NAIC Credit for
Reinsurance Model Regulation 786. Among other changes, the updated
model law and regulation set incremental collateral requirements
for reinsurance ceded to alien reinsurers in order for a cedent to
recognize a reduction in its liabilities for the amount ceded.
Previously, the reinsurance ceded to alien reinsurers was required
to be secured by 100% collateral. Idaho Credit for Reinsurance
Rules no. 18-01-75 issued Mar. 28, 2018 (rules) (redline of proposed rules); South Carolina
H.B. 4656 eff. May 3, 2018 (bill) (redline); Tennessee H.B. 1808 eff. Jan. 1,
2019 (bill) (summary); Tennessee Regs. Chapter 0780-01-63
eff. May 31, 2018 (regulation and redline).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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