S.D. Admin. R. 20:06:31:32

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:06:31:32 - Certified reinsurers - qualified jurisdictions

If, upon conducting an evaluation under this section with respect to the reinsurance supervisory system of any non-U.S. assuming insurer, the director determines the jurisdiction qualifies to be recognized as a qualified jurisdiction, the director shall publish notice and evidence of such recognition in an appropriate manner. The director may establish a procedure to withdraw recognition of those jurisdictions that are no longer qualified.

To determine whether the domiciliary jurisdiction of a non-U.S. assuming insurer is eligible to be recognized as a qualified jurisdiction, the director shall evaluate the reinsurance supervisory system of the non-U.S. jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits and the extent of reciprocal recognition afforded by the non-U.S. jurisdiction to reinsurers licensed and domiciled in the U.S. The director shall determine the appropriate approach for evaluating the qualifications of such jurisdictions, and create and publish a list of jurisdictions whose reinsurers may be approved by the director as eligible for certification. A qualified jurisdiction must agree to share information and cooperate with the director with respect to all certified reinsurers domiciled within that jurisdiction.

A list of qualified jurisdictions shall be published through the National Association of Insurance Commissioners Committee Process. The director shall consider the list published by the National Association of Insurance Commissioners in determining qualified jurisdictions. If the director approves a jurisdiction as qualified that does not appear on the list of qualified jurisdictions, the director shall provide thoroughly documented justification with respect to the criteria provided under the criteria in this section. U.S. jurisdictions that meet the requirements for accreditation under the National Association of Insurance Commissioners financial standards and accreditation program shall be recognized as qualified jurisdictions.

The director may consider additional factors in determining whether to recognize a qualified jurisdiction, including:

(1) The framework under which the assuming insurer is regulated;

(2) The structure and authority of the domiciliary regulator with regard to solvency regulation requirements and financial surveillance;

(3) The substance of financial and operating standards for assuming insurers in the domiciliary jurisdiction;

(4) The form and substance of financial reports required to be filed or made publicly available by reinsurers in the domiciliary jurisdiction and the accounting principles used;

(5) The domiciliary regulators willingness to cooperate with U.S. regulators in general and the director in particular;

(6) The history of performance by assuming insurers in the domiciliary jurisdiction;

(7) Any documented evidence of substantial problems with the enforcement of final U.S. judgments in the domiciliary jurisdiction. A jurisdiction will not be considered to be a qualified jurisdiction if the director has determined that it does not adequately and promptly enforce final U.S. judgments or arbitration awards;

(8) Any relevant international standards or guidance with respect to mutual recognition of reinsurance supervision adopted by the International Association of Insurance Supervisors or successor organization; and

(9) Any other matters deemed relevant by the director.

S.D. Admin. R. 20:06:31:32

44 SDR 71, effective 10/23/2017

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-16.1, 58-14-16.5, 58-14-17.