Bill Caption

Relating to authorized reinsurance and financial statement credit and accounting for reinsurance.

Fiscal Notes

From the LBB: no significant fiscal implication to the state is anticipated.

Bill Analysis

SB 1070 would amend the Insurance Code to allow an insurer to provide reinsurance on any line of insurance. Next, credit would be allowed when reinsurance is ceded to an assuming insurer that meets a series of regulations. Associations may become certified reinsurers as well if they meet established requirements. Third, the Commissioner of Insurance would develop a list of qualified jurisdictions where an insurer must be licensed to be considered for certification as a reinsurer. Finally, the commissioner would be required to assign financial strength ratings to each certified reinsurer.

Vote Recommendation Notes

This legislation is procedural or administrative in nature with no bearing on our liberty principles, therefore we remain neutral.