Reinsurance credit.

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the commissioner's powers and duties. Existing law requires an insurer to file financial statements with the commissioner. For purposes of those financial statements, existing law authorizes a domestic insurer to take a credit for reinsurance if the reinsurance is ceded to an assuming insurer that has been certified by the commissioner as a reinsurer in this state and the insurer secures its obligations in accordance with certain requirements. This bill would extend credit for reinsurance when the reinsurance is ceded to an assuming insurer that has its head office or is domiciled in and is licensed in a reciprocal jurisdiction if specified requirements are met, including solvency requirements and specified assurances from the assuming insurer. The bill would require the commissioner to timely create and publish a list of reciprocal jurisdictions and a list of assuming insurers receiving a credit with a head office or domicile in and that are licensed in a reciprocal jurisdiction. Existing law requires a certified reinsurer to file with the commissioner audited financial statements, regulatory filings, and an actuarial opinion, as specified. Existing law requires a certified reinsurer, upon initial application for certification, to submit audited financial statements for the last 3 years, as specified. This bill would require those documents to include a translation into English, and would require, upon initial certification, audited financial statements for the last 2 years, as specified.