- Florida Reinsurance Collateral Rulemaking Delayed
- May 2, 2014
- Law Firm: Colodny Fass P.A. - Fort Lauderdale Office
Publication of Florida Office of Insurance Regulation ("OIR") proposed Rules to address Florida reinsurance collateral regulations will likely be delayed by at least another month after the issue was removed from the Florida Cabinet agenda last week, April 22, 2014.
The OIR incorporated feedback and written comments on proposed Rules 69O-144.005, F.A.C. and 69O-144.007, F.A.C. after holding an informal workshop on them during early April.
A copy of the updated draft Rules reflecting mostly non-substantive changes is attached for review.
Rules 69O-144.005, F.A.C. and 69O-144.007, F.A.C. are being amended in order to conform to the National Association of Insurance Commissioners (NAIC) model laws for accreditation purposes, as well as 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).
The proposed Rules also address 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 OIR 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 Florida's Insurance 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.