Leveling the Playing Field: NAIC Revises Credit for Reinsurance Models

[Editor's note: Mr. Cicchetti is a partner with Jorden Burt LLP, resident in its Simsbury, CT office. He can be reached at [email protected] or (860) 392-5040. This article does not constitute legal or other professional advice or service by JORDEN BURT LLP and/or its attorneys. Copyright 2011, Anthony N. Cicchetti.]

On Nov. 6, 2011, the National Association of Insurance Commissioners (NAIC) adopted revisions to the NAIC Credit for Reinsurance Model Law (#785) and Credit for Reinsurance Model Regulation (#786). At the heart of the revisions is the addition of a ratings-based framework allowing a ceding insurer to take full statutory …