NRRA Accredited Reinsurer/Credit for Reinsurance
Federal legislation known as the Non-Admitted and Reinsurance Reform Act of 2010 (NRRA) became effective July 21, 2011. The following clarifies Vermont’s accreditation and filing requirements for assuming companies.
Reinsurers Assuming Risks from Vermont Domestic Insurance Companies
Credit for reinsurance is only allowed on the Annual Statement of a Vermont Domestic insurance company if the assuming insurer meets the requirements set forth in Reg. I-1997-03.
Reinsurers Assuming Risks from Foreign Companies, Licensed in Vermont
Credit for reinsurance is allowed on a foreign ceding company’s annual statement filed with DFR when the ceding company’s domestic state is NAIC accredited and has allowed said credit under that state’s credit for reinsurance laws. Accordingly, an assuming insurer of an insurer foreign to Vermont is not required to apply for accreditation in Vermont or complete any Vermont specific filings. We rely entirely on the ceding company’s domestic state regulator regarding appropriate credit for reinsurance.
For Accredited Reinsurer application criteria, please see 8 V.S.A. § 3634a. Credit for reinsurance (d).