Title 15 — Commerce and TradeRelease 119-73not60

§8221 Regulation of Credit for Reinsurance and Reinsurance Agreements

Title 15 › Chapter 108— STATE-BASED INSURANCE REFORM › Subchapter II— REINSURANCE › § 8221

Last updated Apr 3, 2026|Official source

Summary

Other states must allow credit for reinsurance when an insurer’s home state is NAIC‑accredited or has very similar solvency rules and that home state recognizes the credit for the insurer’s ceded risk. Except for taxes and company assessments, a state that is not the insurer’s home state cannot stop parties from using contract arbitration (unless it conflicts with Title 9), force a particular state’s law to govern the reinsurance, rewrite the contract’s terms (unless those terms conflict with this subchapter), or apply its own laws to reinsurance for insurers not based there.

Full Legal Text

Title 15, §8221

Commerce and Trade — Source: USLM XML via OLRC

(a)If the State of domicile of a ceding insurer is an NAIC-accredited State, or has financial solvency requirements substantially similar to the requirements necessary for NAIC accreditation, and recognizes credit for reinsurance for the insurer’s ceded risk, then no other State may deny such credit for reinsurance.

(b)In addition to the application of subsection (a), all laws, regulations, provisions, or other actions of a State that is not the domiciliary State of the ceding insurer, except those with respect to taxes and assessments on insurance companies or insurance income, are preempted to the extent that they—

(1)restrict or eliminate the rights of the ceding insurer or the assuming insurer to resolve disputes pursuant to contractual arbitration to the extent such contractual provision is not inconsistent with the provisions of title 9;

(2)require that a certain State’s law shall govern the reinsurance contract, disputes arising from the reinsurance contract, or requirements of the reinsurance contract;

(3)attempt to enforce a reinsurance contract on terms different than those set forth in the reinsurance contract, to the extent that the terms are not inconsistent with this subchapter; or

(4)otherwise apply the laws of the State to reinsurance agreements of ceding insurers not domiciled in that State.

Reference

Citations & Metadata

Citation

15 U.S.C. § 8221

Title 15 — Commerce and Trade

Last Updated

Apr 3, 2026

Release point: 119-73not60