EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0928*
SENATE BILL 928
C4 3lr2982
By: Senator Griffith
Introduced and read first time: February 16, 2023
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Insurance – Credit for Reinsurance Model Law – Reciprocal Jurisdictions 2
FOR the purpose of prohibiting the Maryland Insurance Commissioner from removing from 3
a certain list of reciprocal jurisdictions created and published by the Commissioner 4
certain jurisdictions located outside the United States and certain jurisdictions in 5
the United States that meet certain accreditation requirements; and generally 6
relating to insurance and reinsurance. 7
BY repealing and reenacting, without amendments, 8
Article – Insurance 9
Section 5–901(a) and (g)(1) and (2) 10
Annotated Code of Maryland 11
(2017 Replacement Volume and 2022 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Insurance 14
Section 5–917(b) 15
Annotated Code of Maryland 16
(2017 Replacement Volume and 2022 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Insurance 20
5–901. 21
(a) In this subtitle the following words have the meanings indicated. 22
(g) “Reciprocal jurisdiction” means a jurisdiction that is: 23
2 SENATE BILL 928
(1) a jurisdiction outside the United States that: 1
(i) is subject to an in–force covered agreement with the United 2
States, each within its legal authority; or 3
(ii) in the case of a covered agreement between the United States 4
and the European Union, is a member state of the European Union; 5
(2) a jurisdiction in the United States that meets the requirements for 6
accreditation under the NAIC financial standards and accreditation program; or 7
5–917. 8
(b) (1) The Commissioner shall timely create and publish a list of reciprocal 9
jurisdictions. 10
(2) The Commissioner’s list shall: 11
(i) include any reciprocal jurisdiction as defined in § 5–901(g)(1) and 12
(2) of this subtitle; and 13
(ii) consider any other reciprocal jurisdiction included on the NAIC 14
list of reciprocal jurisdictions published through the NAIC committee process. 15
(3) The Commissioner may approve a jurisdiction that does not appear on 16
the NAIC list of reciprocal jurisdictions in accordance with regulations the Commissioner 17
adopts. 18
(4) (i) The Commissioner may not remove a jurisdiction that meets the 19
requirements of a reciprocal jurisdiction from the list of reciprocal jurisdictions. 20
(ii) 1. [The] EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 21
OF THIS SUBPARAGRAPH , THE Commissioner may remove a jurisdiction from the list of 22
reciprocal jurisdictions on a determination that the jurisdiction no longer meets the 23
requirements of a reciprocal jurisdiction in accordance with a process set forth in 24
regulations the Commissioner adopts. 25
2. THE COMMISSIONER MAY NOT REMOVE FROM THE 26
LIST OF RECIPROCAL J URISDICTIONS A JURIS DICTION AS DEFINED I N § 5–901(G)(1) 27
OR (2) OF THIS SUBTITLE. 28
(5) On removal of a jurisdiction from the list of reciprocal jurisdictions, 29
credit for reinsurance ceded to an assuming insurer that has its home office or is domiciled 30
in that jurisdiction shall be allowed, if otherwise allowed under this subtitle. 31
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 32
October 1, 2023. 33