15561145, 69O-144.005 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 15561145

Notice of Proposed Rule

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

OIR – Insurance Regulation

Chapter:

REINSURANCE

Overview

RULE:

69O-144.005	Credit for Reinsurance; Accredited Reinsurers
69O-144.007	Credit for Reinsurance from Certified Reinsurers

PURPOSE:

These rules are being amended in order to conform to the National Association of Insurance Commissioners (NAIC) model laws for accreditation purposes and to provide consistency among regulatory jurisdictions as to the manner in which reinsurers are granted the status of “certified reinsurer” (currently termed “eligible reinsurer” in the rule) and the manner in which Florida domestic insurance companies can apply credit for reinsurance from these entities. The amendments pertain to a requirement that ceding insurers notify the Office in the event that reinsurance recoverables or reinsurance ceded exceeds a certain amount; the filing requirements for certified reinsurers; the factors to be considered in the evaluation and rating of certified reinsurers; the method by which a jurisdiction is determined to be qualified; the circumstances under which the Commissioner may suspend, revoke, or otherwise modify a certified reinsurer’s certification; and the effect of a rating downgrade, rating upgrade, or revocation of the certification of a certified reinsurer.

SUMMARY:

There is a need for Florida to make certain changes to these rules to provide consistency amongst jurisdictions and ensure that Florida remains a key player and leader in the insurance marketplace. Among the most material changes are:
1.	Changing the status name from eligible reinsurer to certified reinsurer.
2.	Clarifying and expanding the documentation required to be filed in order to obtain and maintain the status as a “certified reinsurer”
3.	Clarifying process and regulatory responsibilities when the financial condition of a certified reinsurer changes(i.e., there is a change in financial strength rating)
4.	Clarifying disclosure requirements of the Office when it receives an application from a reinsurer for this status
5.	Adding reinsurance concentration disclosure requirements
6.	Adding language that would allow the trusteed surplus of Trusteed Reinsurers to drop below $20 million if the Trusteed reinsurer is no longer underwriting new business and demonstrated that surplus below $20 million was warranted.

RULEMAKING AUTHORITY:

624.308, 624.610(14), FS.

LAW:

624.307(1), 624.610, FS.

PRINT PUBLISH DATE:

1/20/2015 Vol. 41/12

COMMENTS:

From 1/20/2015 To 2/10/2015 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

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