(Last Updated: April 17, 2019)
Effective January 2, 2019, reinsurers may apply for certified status. This allows a domestic ceding company to reduce collateral requirements and still take full credit for reinsurance recoverables from a certified reinsurer for those contracts entered into or renewed after the reinsurer has obtained certified status. This rule does not prohibit parties to a reinsurance agreement from agreeing to provisions establishing collateral requirements which exceed the minimum requirements.
If an applicant has been certified as a reinsurer in an NAIC accredited jurisdiction, Michigan has the discretion to defer to the certification and collateral reduction of a reinsurer assigned by the lead state through the passporting process.
Certification Procedures - Initial and Renewal
Applicants shall submit the following for both Initial and Renewal Certification:
- UCAA Application Checklist for Certified Reinsurers. If applicant is certified in another accredited jurisdiction, only Part I needs to be completed.
- Form CR-1.
- Any other documentation deemed necessary for certification by the Director.
- Application fee of $500.
Renewal applications should be submitted by October 1 for certified status for the upcoming year.
The certified reinsurer status will run through the end of the calendar year unless otherwise determined by the Director.
Please see MCL 500.1101-500.1127 and R. 500.1122-500.1133 for the applicable law and regulation on certified reinsurers.
The public is invited to submit written comments on the below applications. Pursuant to Administrative Rule 500.1131(7), the Director will not take final action until at least 30 days after notice is posted.
Comments may be submitted to:
Michigan Department of Insurance and Financial Services
530 W. Allegan St., 7th Floor
Lansing, MI 48933-1521
|XL Bermuda Ltd.||03/22/2019|
|Somerset Reinsurance Ltd.||04/16/2019|
|Wilton Reinsurance Bermuda Limited||04/17/2019|
Listing of Certified Reinsurers
|Hannover Ruck SE||AA-1340125||04/10/2019||04/10/2019-12/31/2019||Secure-2||04/10/2019||10%|
|New Reinsurance Company Ltd.||AA-1460100||02/26/2019||02/26/2019-12/31/2019||Secure-2||02/26/2019||10%|
Pursuant to MCL 500.1103(6)(c), the Director is required to publish a list of qualified jurisdictions under which an assuming insurer licensed and domiciled in a qualified jurisdiction is eligible to be considered for certification by the Director as a certified reinsurer.
|Qualified Jurisdictions||Effective Date|
NOTE: In addition to the list above, any U.S. jurisdictions that meet the requirement for accreditation under the NAIC financial standards and accreditation program are recognized as qualified jurisdictions pursuant to MCL 500.1103(6)(c)(iii).