HB 464 (BR 1936) - J. Gooch Jr., S. Riggs, B. Rowland

     AN ACT relating to credit for reinsurance.
     Amend KRS 304.5-140 to define "NAIC"; allow commissioner of Department of Insurance to promulgate administrative regulations establishing additional requirements for certain reinsurance arrangements; require accredited reinsurers to demonstrate adequate financial capacity; authorize reduction in trusteed surplus for certain assuming insurers maintaining a trust for the payment of reinsurance claims; establish requirements for certain assuming insurers maintaining a trust for the payment of reinsurance claims; establish requirements for assuming insurers that have been certified or seek to be certified as a reinsurer in Kentucky; require the commissioner to publish a list of qualified jurisdictions under which assuming insurers are eligible to be considered for certification as a reinsurer; require the commissioner to assign and publish a list setting forth the rating for each certified reinsurer; authorize the commissioner to suspend or revoke a reinsurer's accreditation or certification and establish due process procedures; establish requirements for the management of a ceding insurer's reinsurance recoverables; allow the commissioner to permit a certified reinsurer to defer posting security for catastrophic recoverables under certain circumstances; include certain exempted assets as acceptable forms of security permitted for certain reinsurance arrangements; authorize commissioner to promulgate administrative regulations; make conforming amendments; EFFECTIVE January 1, 2019.