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Thursday, November 7, 2013

FIO Issues Report on Impact of Part II of NRRA

The Federal Insurance Office (FIO) has issued its report to Congress on the impact of Part II of the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA).  The FIO concluded that,"Part II of the NRRA has not had an adverse impact on the ability of state regulators to access reinsurance information for regulated companies."

About NRRA
The Nonadmitted and Reinsurance Reform Act of 2010 (NRRA) was included in Title V of the Dodd-Frank Act.  Part II of NRRA addresses the regulation of reinsurance.

"The purpose of the NRRA is to enhance uniformity in the state-based solvency regulation of
insurers by increasing deference to the authorities of the domiciliary state (i.e., the state that is
the home regulator of the reinsurer)...Part II of the NRRA prohibits a non-domiciliary state regulator from requiring a reinsurer to provide financial information other than financial information provided to the regulator in the domiciliary state. NRRA is intended to enhance uniformity in the state-based regulation of insurers by increasing deference to the authority of the reinsurer's home state. Part II of NRRA prohibits a non-home state regulator from requiring a reinsurer to provide financial information other than financial information provided to the home state regulator."

Read the FIO Report.