West Virginia House Bill 4230, approved by Governor Justice on March 27, amends the statutory requirements relating to when an insurer may claim credit for reinsurance to conform to the NAIC model law. The bill establishes requirements for:
- Domestic insurers to be allowed credit;
- Reinsurers to meet in order for credit to be granted to ceding insurers;
- The location where assets that provide security to fund United States obligations must be maintained by a non-United States insurer or reinsurer;
- The filing and valuation of claims; and
- Provision of an asset or reduction from liability for reinsurance ceded by a domestic insurer.
The bill also provides for the distribution of assets of an insolvent non-United States insurer or reinsurer, in addition to providing the Insurance Commissioner with authority to promulgate related legislative and emergency rules.
The bill takes effect January 1, 2019 and applies to all cessions under reinsurance agreements that have an inception, anniversary, or renewal date on or after that date.
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