NAIC OKs Collateral Relief For Some Foreign Reinsurers

Law360, New York (December 19, 2013, 4:31 PM EST) -- State insurance regulators on Wednesday cleared the way for reduced collateral requirements for reinsurers hailing from Bermuda, Switzerland, Germany and the U.K. when they do business with U.S. insurers.

The National Association of Insurance Commissioners voted to add the quartet to its list of jurisdictions that qualify for lower reinsurance collateral requirements under the NAIC's Credit for Reinsurance Model Law, starting in January 2014. 

The vote follows NAIC's efforts to reform requirements that foreign reinsurers post 100 percent collateral for their U.S. liabilities before their U.S....
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