SB 809 — AN ACT ENABLING THE INSURANCE COMMISSIONER TO ADOPT REGULATIONS CONCERNING CREDITS FOR REINSURANCE AND MAKING MINOR CONFORMING CHANGES TO STATUTES CONCERNING REINSURANCE.

General Assembly   RaisedSubstitute Bill No.

809 January Session, 2017   LCO*_____SB00809INS___030817____* No.AN ACT ENABLING THE INSURANCE COMMISSIONER TO ADOPT REGULATIONS CONCERNING CREDITS FOR REINSURANCE AND MAKING MINOR CONFORMING CHANGES TO STATUTES CONCERNING REINSURANCE.

3899   *03899_______INS* Referred to Committee on INSURANCE AND REAL ESTATE   Introduced by:

  (INS)   AN ACT ENABLING THE INSURANCE COMMISSIONER TO ADOPT REGULATIONS CONCERNING CREDITS FOR REINSURANCE AND MAKING MINOR CONFORMING CHANGES TO STATUTES CONCERNING REINSURANCE.

(a) (1) Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a deduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of:

[(1)](1) (A) Subsection (b) of this section;

[(2)](2) (B) Subsection (c) of this section;

[(3)](3) (C) Subsections (d) and (h) of this section;

[(4)](4) (D) Subsections (e), (h) and (i) of this section;

[(5)](5) (E) Subsections (f) and (i) of this section;

[or] [(6)](6) (F) Subsection (g) of this section;

[.] or (G)(7) Any regulation adopted pursuant to subsection (b) of section 38a-88, as amended by this act.

(b) The commissioner may adopt regulations in accordance with the provisions of chapter 54 to establish additional requirements asfor setcredit forthfor an asset or a reduction in liability that are consistent with the requirements established in section 38a-88, as amended by this act.

(b) (1) The commissioner may adopt regulations in accordance with the provisions of chapter 54 to establish, in addition to the provisionsrequirements of sections 38a-85, as amended by this act, and 38a-86, as amended by this act, requirements relating to or setting forth (A) the valuation of assets or reserve credits, (B) the circumstances under which credit will be reduced or eliminated, and (C) the amounts and forms of security supporting reinsurance agreements relating to (i) life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits, (ii) universal life insurance policies with provisions that permit a policyholder to keep such policy in force over a secondary guarantee period, (iii) variable annuities with guaranteed death or living benefits, (iv) long-term care policies, or (v) any other life insurance, health insurance or annuity products for which the National Association of Insurance Commissioners adopts credit for reinsurance requirements.

(2) Any regulation adopted pursuant to subdivision (1) of this subsection that relates to policies described in subparagraph (C)(i) or (C)(ii) of subdivision (1) of this subsection may apply to reinsurance agreements that include such policies issued on or after January 1, 2015,2018, and such policies issued prior to January 1, 2015,2018, if risk pertaining to such policies is ceded, in whole or in part, in connection with such agreement on or after January 1, 2015.2018.

4 October 1, 2017 38a-73 StatementINS ofJoint Purpose:Favorable Subst.

To enable the Insurance Commissioner to adopt regulations concerning credits for reinsurance, and to make minor conforming changes to statutes concerning reinsurance.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]