Reinsurers Qualifying as a Certified Reinsurer

Pursuant to §375.246 of Missouri’s credit for reinsurance law and regulation 20 CSR 200-2.100 (6), any unauthorized assuming insurer or any alien group of insurers that meets the department’s requirements may qualify as a certified reinsurer. Depending on the financial strength rating granted by the department, a certified reinsurer will be allowed to post less than 100 percent collateral and still enable an authorized insurer to qualify for full reserve credit with respect to reinsurance contracts renewed or entered into, on or after Jan. 1, 2014, or the date the reinsurer becomes certified.

1. Company submits an initial application accompanied by a filing fee of $1,000 and shall pay an annual filing fee of $2,000 for each year thereafter. Please complete the application checklist and email InsuranceSolvency@insurance.mo.gov with any questions.
2. Company must be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction.
3. Company maintains capital and surplus, or its equivalent, of no less than $250 million.
4. Company maintains a financial strength rating from two or more acceptable rating agencies. The ratings shall be based on interactive communication between the rating agency and the assuming insurer. An acceptable rating agency is:
   • Standard & Poor's.
   • Moody's Investors Service.
   • Fitch Ratings.
   • A.M. Best Company.
   • Kroll Bond Rating Agency.
   • Any other nationally recognized statistical rating organization acceptable to the Director.
5. An assuming insurer applying to be a certified reinsurer shall agree to post 100 percent security upon the entry of an order of rehabilitation, liquidation or conservation against the ceding insurer for the benefit of the ceding insurer or its estate.
6. For a certified reinsurer domiciled in the United States, the most recent applicable NAIC Annual Statement Blank, and either Schedule F (for a property/casualty reinsurer) or Schedule S (for a life or health reinsurer).
7. For a certified reinsurer not domiciled in the United States, the most recent Form CR-F (for a property/casualty reinsurer) or Form CR-S (for a life or health reinsurer), as such forms shall be prescribed by the Director.
8. Disclose past, current or pending regulatory actions against the certified reinsurer.
9. Provide a list, by cedent, of all overdue reinsurance claims payable that are more than 90 days past due or are in dispute regarding reinsurance assumed by the applicant from U.S. domestic ceding insurers. Identify whether any of the listed cedents are in administrative supervision or receivership.
10. Provide report of the independent auditor on the financial statements of the certified reinsurer.
11. For a certified reinsurer not domiciled in the United States, audited financial statements, (i.e., audited United States GAAP basis if available; audited IFRS basis statements including an audited footnote reconciling equity and net income to a United States GAAP basis; or with the permission of the Director, audited IFRS statements with reconciliation to United States GAAP certified by an officer of the company), regulatory financial statement filings, and actuarial opinion as filed with the non-United States jurisdiction supervisor. Upon the initial application for certification, the insurer shall provide the Director with audited financial statements filed with its non-United States jurisdiction supervisor for at least the previous three years.
12. Disclose the liquidation priority of obligations to a ceding insurer in the certified reinsurer's domiciliary jurisdiction in the context of an insolvency proceeding.
13. Disclose a certified reinsurer's past or current participation in any solvent scheme of arrangement, or similar procedure that involves U.S. ceding insurers. A certified reinsurer that proposes participation by the certified reinsurer in a solvent scheme of arrangement shall provide the Director with prior notice of such scheme as early as practicable.
14. Submit a properly executed Form CR-1 on a form prescribed by the Director as evidence of its submission to the jurisdiction of this state.
15. Submit a certification from its domestic regulator that the certified reinsurer is in good standing and maintains capital in excess of the jurisdiction's highest regulatory action level.
16. The reinsurer must agree that all reinsurance contracts will include the provisions required by Regulation 20 CSR 200-2.100(6)(E).

InsuranceSolvency@insurance.mo.gov
573-751-4362