As soon as the covered agreements are fully implemented, they will remove the warranty and local presence requirements for qualified US reinsurers operating in the EU and UK insurance market and remove the requirement for guarantees for qualified EU and UK reinsurers operating in the US insurance market as a condition for their US seedlings. , borrow for reinsurance. If the United States, as stipulated in the agreements, take appropriate steps to establish group capital standards, the covered agreements provide that US insurance groups operating in the EU and the United Kingdom are supervised only by the US insurance authorities in the U.S. insurance supervisory authority and that U.S. insurers in the EU and the United Kingdom are supervised globally only by the U.S. insurance supervisory authorities. EU and the UK. The Dodd-Frank Wall Street Reform and Consumer Protection Act authorized the U.S. Department of Finance, the U.S. Trade Representative and the newly created Federal Insurance Bureau to negotiate and enter into international oversight agreements. The FIO Act also authorizes the pre-emption period for U.S. public insurance measures when the DIRECTOR of the FIO finds that the government`s measures are inconsistent with a covered agreement and lead to less favorable treatment to a non-U.S.
insurer covered by the covered agreement than a U.S. insurer residing in that state is licensed or otherwise licensed. The covered agreement between the United States and the United Kingdom operates on the same schedule, although the agreement only « enters into force » when the governments of the United Kingdom and the United States exchange written information indicating that they have met internal requirements and procedures. This is expected to be the time when the UK will no longer be covered by the covered agreement between the US and the EU after its withdrawal from the EU. It may not be that simple. The model law requires an assessment of the credit quality of a reinsurer, if the courts of the other country would impose a U.S. judgment, the quality of the regulation in the foreign jurisdiction and other factors. It is possible that consideration of these factors may lead to the conclusion that a covered agreement provides a level of protection essentially corresponding to the detachment of safeguards. Maria T. Vullo, Superintendent of the New York State Department of Financial Services and Chair of the NAIC Reinsurance (E) Task Force, addressed these issues in her opening remarks.