EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0928*
SENATE BILL 928
C4 3lr2982
By: Senator Griffith
Introduced and read first time: February 16, 2023
Assigned to: Rules
Re–referred to: Finance, March 3, 2023
Committee Report: Favorable
Senate action: Adopted
Read second time: March 9, 2023
CHAPTER ______
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 2 SENATE BILL 928
5–901. 1
(a) In this subtitle the following words have the meanings indicated. 2
(g) “Reciprocal jurisdiction” means a jurisdiction that is: 3
(1) a jurisdiction outside the United States that: 4
(i) is subject to an in–force covered agreement with the United 5
States, each within its legal authority; or 6
(ii) in the case of a covered agreement between the United States 7
and the European Union, is a member state of the European Union; 8
(2) a jurisdiction in the United States that meets the requirements for 9
accreditation under the NAIC financial standards and accreditation program; or 10
5–917. 11
(b) (1) The Commissioner shall timely create and publish a list of reciprocal 12
jurisdictions. 13
(2) The Commissioner’s list shall: 14
(i) include any reciprocal jurisdiction as defined in § 5–901(g)(1) and 15
(2) of this subtitle; and 16
(ii) consider any other reciprocal jurisdiction included on the NAIC 17
list of reciprocal jurisdictions published through the NAIC committee process. 18
(3) The Commissioner may approve a jurisdiction that does not appear on 19
the NAIC list of reciprocal jurisdictions in accordance with regulations the Commissioner 20
adopts. 21
(4) (i) The Commissioner may not remove a jurisdiction that meets the 22
requirements of a reciprocal jurisdiction from the list of reciprocal jurisdictions. 23
(ii) 1. [The] EXCEPT AS PROVIDED IN SUBSUBPARAGRAPH 2 24
OF THIS SUBPARAGRAPH , THE Commissioner may remove a jurisdiction from the list of 25
reciprocal jurisdictions on a determination that the jurisdiction no longer meets the 26
requirements of a reciprocal jurisdiction in accordance with a process set forth in 27
regulations the Commissioner adopts. 28
2. THE COMMISSIONER MAY NOT REMOVE FROM THE 29
LIST OF RECIPROCAL JURISDICTIONS A JURI SDICTION AS DEFINED IN § 5–901(G)(1) 30
OR (2) OF THIS SUBTITLE. 31 SENATE BILL 928 3
(5) On removal of a jurisdiction from the list of reciprocal jurisdictions, 1
credit for reinsurance ceded to an assuming insurer that has its home office or is domiciled 2
in that jurisdiction shall be allowed, if otherwise allowed under this subtitle. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October 1, 2023. 5
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.