The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Cheryl Cooper.
DIGEST
SB 104 Original 2016 Regular Session John Smith
Present law provides for credit for reinsurance ceded by domestic insurers in accordance with the
National Association of Insurance Commissioners (NAIC) Model Credit for Reinsurance Law.
Proposed law retains present law and adds provisions recently added to the NAIC Model Credit for
Reinsurance Law.
Proposed law provides that the commissioner may adopt by regulation specific additional
requirements relating to or setting forth the valuation of assets or reserve credits, the amount and
forms of security supporting reinsurance arrangements, or the circumstances pursuant to which credit
will be reduced or eliminated.
Present law provides for the commissioner of insurance to promulgate rules and regulations in
accordance with the Administrative Procedure Act.
Proposed law retains present law and further provides that the commissioner may adopt rules and
regulations applicable to the following reinsurance arrangements:
(1)An adopted regulation may apply only to reinsurance relating to any or all of the following:
(a)Life insurance policies with guaranteed nonlevel gross premiums or guaranteed
nonlevel benefits.
(b)Universal life insurance policies with provisions resulting in the ability of a
policyholder to keep a policy in force over a secondary guarantee period.
(c)Variable annuities with guaranteed death or living benefits.
(d)Long-term care insurance policies.
(e)Such other life and health insurance and annuity products as to which the NAIC
adopts model regulatory requirements with respect to credit for reinsurance.
(2)Proposed law further provides that a regulation adopted pursuant to proposed law may apply
to any treaty containing policies issued on or after January 1, 2015, or policies issued prior
to January 1, 2015, if risk pertaining to such pre-2015 policies is ceded in connection with
the treaty, in whole or in part, on or after January 1, 2015.
Effective August 1, 2016. (Amends R.S. 22:651(A), 652, and 661)