Senate Commerce Committee Statement to Senate, No. 4213 — State of New Jersey (December 6, 2021)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated December 6, 2021, reports favorably Senate Bill No. 4213. The bill updates current law on credit for reinsurance ceded by a domestic insurer to an assuming insurer with its head office domiciled and licensed in a reciprocal jurisdiction. It eliminates reinsurance collateral and local presence requirements for reinsurers in the European Union and United Kingdom that maintain minimum capital and surplus requirements. The assuming insurer's supervisory authority must confirm compliance to the commissioner annually, and the commissioner may revoke or suspend eligibility.

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SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No.
4213

STATE
OF NEW JERSEY

DATED: DECEMBER
6, 2021

The Senate Commerce Committee reports favorably Senate
Bill No. 4213.

This
bill updates current law on credit for reinsurance by providing credit for
reinsurance ceded by a domestic insurer to an assuming insurer that has its
head office domiciled and licensed in a reciprocal jurisdiction. The bill
eliminates reinsurance collateral requirements and local presence requirements
for reinsurers in the European Union and United Kingdom that maintain minimum
capital and surplus requirements. Under the bill, the supervisory authority of
the assuming insurer is to confirm to the commissioner on an annual basis that
the assuming insurer complies with certain requirements. The commissioner may
revoke or suspend the eligibility of an assuming insurer if it no longer meets
one or more of the requirements.

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