Reciprocal Jurisdiction Reinsurers

The federal Dodd-Frank Wall Street Reform and Consumer Protection Act authorized the U.S. Treasury Secretary and the U.S. Trade Representative to negotiate and enter into covered agreements, which are international agreements relating to the recognition of prudential measures with respect to the business of insurance or reinsurance that achieve a level of protection for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under state insurance or reinsurance regulation.

Covered agreements address the elimination, under specified conditions, of collateral requirements for reinsurance ceded to certain reciprocal jurisdiction reinsurers by a ceding insurer domiciled in the United States.

In 2020, Louisiana's Credit for Reinsurance statutes were amended to provide for covered agreements and related matters. These amendments created a new category of non-U.S. reinsurers, so-called “reciprocal jurisdiction” reinsurers, which may qualify to provide reinsurance to U.S. cedents without posting collateral for reinsurance credit.

Full Application
Reciprocal Jurisdiction Reinsurers requesting Louisiana to act as its “Lead State” for NAIC Reinsurance Financial Analysis (E) Working Group (ReFAWG) and passporting purposes should file a full application, meaning complete Section I on the Uniform Checklist for Reciprocal Jurisdiction Reinsurers (below), and file all the necessary corresponding exhibits detailed in that section of the checklist.

Passport Application
Reciprocal Jurisdiction Reinsurers who have established their Lead State with an NAIC accredited jurisdiction other than Louisiana, whose initial application has been reviewed by ReFAWG, and would like their reciprocal jurisdiction reinsurer status recognized in Louisiana should file a passport application, meaning complete Section II on the Uniform Checklist for Reciprocal Jurisdiction Reinsurers (below), and file all of the necessary corresponding exhibits detailed in that section of the checklist.

Louisiana Uniform Checklist for Reciprocal Jurisdiction Reinsurers

FORM RJ-1

Application Fees
None

Applicable Louisiana Laws

La. R.S. 22:651(F)

LAC 37:XIII.3511 (Regulation 56)

Advisory Letter 2021-06 (Reciprocal Jurisdictions)

Reciprocal Jurisdictions

Accredited US Jurisdictions

NAIC List of Reciprocal Jurisdictions

Listing of Reciprocal Jurisdiction Reinsurers

The reciprocal jurisdiction reinsurer status shall remain in effect unless and until suspended, revoked, or otherwise modified by the commissioner under the provisions of LAC 37:XIII.3511.F.

Reciprocal Jurisdiction Reinsurers whose eligibility was revoked, suspended, or revoked during past year:
None