Bill Summary for S 299 (2021)

Summary date: 

May 6 2021

Bill Information:

View NCGA Bill Details2021
Senate Bill 299 (Public) Filed Monday, March 15, 2021
AN ACT TO MAINTAIN NAIC ACCREDITATION OF THE DEPARTMENT OF INSURANCE BY MAKING REVISIONS TO THE LAWS GOVERNING CREDIT FOR REINSURANCE AND RESERVE FINANCING.
Intro. by Sawyer, Johnson.

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Bill summary

Senate committee substitute to the 1st edition makes the following changes. 

Part I

Makes revisions to proposed GS 58-7-21(b)(4b), which allows for credit when reinsurance is ceded from an insurer domiciled in the State to an assuming insurer licensed to transact reinsurance by, or have its head office or is domiciled in, a reciprocal jurisdiction. Makes changes throughout to the formatting of internal cross-references. 

Part II

Revises proposed GS 58-7-22, which establishes general requirements for life insurance ceded for reserve financing purposes. Makes clarifying changes to internal cross-references. Revises new GS 58-7-22(e)(1)g.1. to require the determination of reinsurance credit for ceded reserves, when a reinsurance treaty subject to this statute cedes risk on both covered and noncovered policies, be determined pursuant to subsections (g) and (h) in addition to subsection (f). Makes further technical changes. Codifies the statute's effective date of September 1, 2021.

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