Fill - Free fillable UNIFORM CHECKLIST FOR RECIPROCAL JURISDICTION RE INSURERS (Arizona) PDF form

Form E-RJ-C (v 20220501) Page 1 of 5

Email: financialfilings@difi.az.gov

UNIFORM CHECKLIST FOR RECIPROCAL JURISDICTION RE

INSURERS

When Arizona is the Lead State, use pages 1 - 4 ONLY. When Arizona is a Passporting State, use page 5 ONLY.

Reciprocal Jurisdiction Reinsurer Information When Arizona is the Lead State, use pages 1 - 4 ONLY.

Company

Name:

Address:

Primary Contact:

Domiciliary Jurisdiction / Supervisory Authority:

Applicable Lines of Business:

I. Filing Requirements for “Lead State” of Reciprocal Jurisdiction Reinsurer USE PAGES 1 - 4 ONLY

Check appropriate box:

☐

Initial Filing

☐

Annual Filing

The “Lead State” will uniformly require assuming insurers to provide the following documentation so that other states may

rely upon the Lead State’s determination:

Citation to

State Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20-

3602(H)(1)(a),

(I)(1)

Arizona

Administrative

Code R20-6-

A1606(A), (B),

(C)(1), (D)(1)

Status of Reciprocal Jurisdiction:

The assuming insurer must be licensed to

write reinsurance by, and has its head

office or is domiciled in, a Reciprocal

Jurisdiction that is listed on the NAIC List

of Reciprocal Jurisdictions:

• A non-

U.S. jurisdiction that is subject to

an in-force Covere

d Agreement with the

United States;

•

A U.S. jurisdiction that meets the

requirements for accreditation under the

NAIC Financial Standards and

Accreditation Program;

•

A Qualified Jurisdiction that has been

determined by the Director

to meet all

applicable requirements to be a

Reciprocal Jurisdiction.

The Reciprocal Jurisdiction Reinsurer should

identify which type of jurisdiction it is domiciled

in and provide any documentation to confirm

this status if requested by the Director.

Reset

UNIFORM CHECKLIST FOR RECIPROCAL JURISDICTION REINSURERS

Form E-RJ-C (v 20220501) Page 2 of 5

Citation to

State Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20-

3602(H)(2)

Arizona

Administrative

Code R20-6-

A1606(C)(2)

Arizona

Revised

Statutes § 20-

3602(H)(7)

Arizona

Administrative

Code R20-6-

A1606(C)(7)

Minimum Capital and Surplus:

The assuming insurer must have and

maintain on an ongoing basis minimum

capital and surplus, or its equivalent,

calculated on at least an annual basis as of

the preceding December 31 or at the

annual date otherwise statutorily reported

to the Reciprocal Jurisdiction:

• N

o less than $250,000,000 (USD); or

• I

f the assuming insurer is a

sociation, including incorporated a

individual unincorporated underwriters:

o Minimum capital and surplus

equivalents (net of liabilities) or

own funds of the equivalent of

at least $250,000,000 (USD);

and

o A central fund containing a

balance of the equivalent of at

least $250,000,000 (USD).

The assuming insurer’s supervisory

authority must confirm to the

commissioner on an annual basis

according to the methodology of its

domiciliary jurisdiction that the

assuming insurer complies with this

requirement.

Arizona

Revised

Statutes § 20-

3602(H)(3)

Arizona

Administrative

Code R20-6-

A1606(C)(3)

Minimum Solvency or Capital Ratio:

The assuming insurer must have and

maintain on an ongoing basis a minimum

solvency or capital ratio.

• T

he ratio specified in the applicable in-

force Covered Agreement where t

assuming insurer has its head office or

is domiciled; or

• I

f the assuming insurer is domiciled i

an ac

credited state, a risk-bas

apital (RBC) ratio of three hundr

percent (300%) of the authorized

control level, calculated in accordance

ith the formula developed by t

AIC; or

UNIFORM CHECKLIST FOR RECIPROCAL JURISDICTION REINSURERS

Form E-RJ-C (v 20220501) Page 3 of 5

Citation to

State Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20-

3602(H)(7)

Arizona

Administrative

Code R20-6-

A1606(C)(7)

• If the assuming insurer is domiciled in

a Reciprocal Jurisdiction that is a

Qualified Jurisdiction, such solvency or

capital ratio as the Director determines

to be an effective measure of solvency.

The assuming insurer’s supervisory

authority must confirm to the

commissioner on an annual basis that

the assuming insurer complies with this

requirement.

Arizona

Revised

Statutes § 20-

3602(H)(4)

Arizona

Administrative

Code R20-6-

A1606(C)(4)

Form E-RJ-1:

The assuming insurer must agree to and

provide a signed Form E-RJ-1, which must

be properly executed by an officer of the

assuming insurer.

Form E-RJ-1

Arizona

Revised

Statutes § 20-

3602(H)(5)

Arizona

Administrative

Code R20-6-

A1606(C)(5)

Financial/Regulatory Filings:

• The assuming insurer’s annual audited

financial statements, in accordance

with the applicable law of the

jurisdiction of its head office or

domiciliary jurisdiction, as applicable,

including the external audit report;

• The solvency and financial condition

report or actuarial opinion, if filed with

the assuming insurer’s supervisor;

• An updated list of all disputed and

overdue reinsurance claims

outstanding for 90 days or more,

regarding reinsurance assumed from

ceding insurers domiciled in the United

States. This is for purposes of

evaluating Prompt Payment of

Claims.

• Information regarding the assuming

insurer’s assumed reinsurance by

ceding insurer, ceded reinsurance by

the assuming insurer, and reinsurance

recoverable on paid and unpaid losses

by the assuming insurer.

The Reciprocal Jurisdiction Reinsurer shall

provide this information if requested by the

Director consistent with the requirements of

Model #785 & Model #786.

NAIC staff will perform a review of Schedules

F and S filed by U.S. domiciled ceding

insurers.

Applicants domiciled in the U.S. must provide

the most recent NAIC Annual Statement Blank

Schedule F (property/casualty) and/or

Schedule S (life and health). Applicants

domiciled outside the U.S. may provide this

information using Form CR-F

(property/casualty) and/or Form CR-S (life and

health), which ReFAWG considers sufficient to

meet this requirement.

UNIFORM CHECKLIST FOR RECIPROCAL JURISDICTION REINSURERS

Form E-RJ-C (v 20220501) Page 4 of 5

Citation to

State Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20-

3602(H)(6)

Arizona

Administrative

Code R20-6-

A1606(C)(6)

Prompt Payment of Claims:

The assuming insurer must maintain a

practice of prompt payment of claims under

reinsurance agreements. The lack of

prompt payment will be evidenced if any of

the following criteria is met:

• More than fifteen percent (15%) of the

reinsurance recoverables from the

assuming insurer are overdue and in

dispute as reported to the Director;

• More than fifteen percent (15%) of the

assuming insurer’s ceding insurers or

reinsurers have overdue reinsurance

recoverable on paid losses of 90 days

or more which are not in dispute and

which exceed for each ceding insurer

$100,000, or as otherwise specified in

a Covered Agreement; or

• The aggregate amount of reinsurance

recoverable on paid losses which are

not in dispute, but are overdue by 90

days or more, exceeds $50,000,000,

or as otherwise specified in a Covered

Agreement.

The calculation for Prompt Payment of Claims

is based upon the total global claims of the

Reciprocal Jurisdiction Reinsurer, and not

based solely on U.S. claims. NAIC staff will

perform a slow-pay analysis based upon

filings of Schedule F by U.S. domiciled ceding

insurers with respect to property reinsurance.

The level of detail required to perform a slow

pay analysis does not exist in Schedule S with

respect to life reinsurance. The Lead State

should attempt to obtain this information

directly from the Reciprocal Jurisdiction

Reinsurer and/or its supervisor.

Fee: Not Applicable for Arizona.

N/A N/A

II. Filing Requirements for “Passporting State” of Reciprocal Jurisdiction Reinsurer When Arizona is a

Passporting State, use page 5 ONLY.

III. Interaction Between Certified Reinsurers and Reciprocal Jurisdiction Reinsurers

Under Section 8A(5) of the Credit for Reinsurance Model Regulation (#786), credit for reinsurance shall apply only to reinsurance

contracts entered into or renewed on or after the effective date of the certification of the assuming insurer with respect to Certified

Reinsurers. Under Section 2F(7) of the Credit for Reinsurance Model Law (#785), credit shall be taken with respect to Reciprocal

Jurisdiction Reinsurers only for reinsurance agreements entered into, amended, or renewed on or after the effective date of the statute

adding this subsection, and only with respect to losses incurred and reserves reported on or after the later of (i) the date on which the

assuming insurer has met all eligibility requirements to be designated a Reciprocal Jurisdiction Reinsurer, and (ii) the effective date of

the new reinsurance agreement, amendment, or renewal.

It is expected that certain assuming insurers may be considered to be Certified Reinsurers for purposes of in-force business and

Reciprocal Jurisdiction Reinsurers with respect to reinsurance agreements entered into, amended, or renewed on or after the effective

date. In addition, these same reinsurers may also have certain blocks of business that are fully collateralized under the prior provisions

of Model #785 and Model #786. The NAIC blanks will be amended to reflect the status of these reinsurers with respect to each type of

insurance assumed.

Send to financialfilings@difi.az.gov. Do not send a hard copy.

UNIFORM CHECKLIST FOR RECIPROCAL JURISDICTION REINSURERS

Form E-RJ-C (v 20220501) Page 5 of 5

Reciprocal Jurisdiction Reinsurer Information When Arizona is a Passporting State, use page 5 ONLY.

Company Name:

Address:

Primary Contact:

Domiciliary Jurisdiction / Supervisory Authority:

Applicable Lines of Business:

II. Filing Requirements for “Passporting State” of Reciprocal Jurisdiction Reinsurer

In order to facilitate multi-state recognition of assuming insurers and to encourage uniformity among the states, the NAIC has initiated a

process called “passporting” under which the commissioner has the discretion to defer to another state’s determination with respect to

compliance with this section. Passporting is based upon individual state regulatory authority, and states are encouraged to act in a

uniform manner in order to facilitate the passporting process. States are also encouraged to utilize the passporting process to reduce

the amount of documentation filed with the states and reduce duplicate filings.

If an NAIC accredited jurisdiction has determined that the conditions set forth under the Filing Requirements for Lead States have been

met, the commissioner has the discretion to defer to that jurisdiction’s determination, and add such assuming insurer to the list of

assuming insurers to which cessions shall be granted credit. The commissioner may accept financial documentation filed with the Lead

State or with the NAIC.

The following documentation must be filed with the Passporting State:

Citation to State Law /

Regulation

Requirements

Reference and

Supporting

Documents

Arizona Revised Statutes

§ 20-3602(H)(4)

Arizona Administrative

Code R20-6-A1606(C)(4)

Form E-RJ-1:

An assuming insurer must submit a properly

executed Form E-RJ-1 and additional information

as the Director may require, except to the extent

that they conflict with a Covered Agreement.

Form E-RJ-1

Arizona Administrative

Code R20-6-A1606(E)(1)

Lead State:

If an NAIC accredited jurisdiction has determined

that the required conditions have been met, the

Director has the discretion to defer to that

jurisdiction’s determination. The Director may

accept financial documentation filed with another

NAIC accredited jurisdiction or with the NAIC in

satisfaction of this requirement.

The applicant must provide a copy of the

approval letter or other documentation

provided to the applicant by the NAIC

accredited jurisdiction. The letter should

include the state, effective date, and lines of

business. The applicant also should have

been reviewed and recommended for

passporting by ReFAWG.

Fee: Not Applicable for Arizona.

N/A

III. Interaction Between Certified Reinsurers and Reciprocal Jurisdiction Reinsurers

Under Section 8A(5) of the Credit for Reinsurance Model Regulation (#786), credit for reinsurance shall apply only to reinsurance

contracts entered into or renewed on or after the effective date of the certification of the assuming insurer with respect to Certified

Reinsurers. Under Section 2F(7) of the Credit for Reinsurance Model Law (#785), credit shall be taken with respect to Reciprocal

Jurisdiction Reinsurers only for reinsurance agreements entered into, amended, or renewed on or after the effective date of the statute

adding this subsection, and only with respect to losses incurred and reserves reported on or after the later of (i) the date on which the

assuming insurer has met all eligibility requirements to be designated a Reciprocal Jurisdiction Reinsurer, and (ii) the effective date of

the new reinsurance agreement, amendment, or renewal.

It is expected that certain assuming insurers may be considered to be Certified Reinsurers for purposes of in-force business and

Reciprocal Jurisdiction Reinsurers with respect to reinsurance agreements entered into, amended, or renewed on or after the effective

date. In addition, these same reinsurers may also have certain blocks of business that are fully collateralized under the prior provisions

of Model #785 and Model #786. The NAIC blanks will be amended to reflect the status of these reinsurers with respect to each type of

insurance assumed.

Send to financialfilings@difi.az.gov. Do not send a hard copy.

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