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Home » Bulletins » Northern Mariana Islands Approves Reciprocal Jurisdiction Reinsurers Under New Insurance Order

Northern Mariana Islands Approves Reciprocal Jurisdiction Reinsurers Under New Insurance Order

NMI| Administrative Order 2022-03 consists of the Northern Mariana Islands Insurance Commissioner implements the National Association of Insurance Commissioners (NAIC) Credit for Reinsurance Model Law and Regulation (785/786) by recognizing reciprocal jurisdiction reinsurers. It includes the full text of the bilateral agreements between the United States and the European Union, and the United States and the United Kingdom, on prudential measures regarding insurance and reinsurance.

Key points:

  • The agreements eliminate collateral and local presence requirements for reinsurers from reciprocal jurisdictions (EU and UK), provided they meet specified capital, solvency, and reporting standards.
  • They clarify the roles of home and host supervisory authorities, ensuring that group supervision and capital requirements are primarily conducted by the home regulator, with host authorities retaining certain information and intervention rights.
  • The documents establish protocols for the exchange of supervisory information, confidentiality, and procedures for resolving disputes or amending the agreements, with joint committees overseeing implementation and consultation.

Click here to see NMI Administrative Order 2022-03

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