SECTION 7.624. Qualified Jurisdictions

(a) If the Commissioner determines that the jurisdiction qualifies to be recognized as a qualified jurisdiction under Insurance Code §493.1035 and this section, the Commissioner will publish notice of such recognition on the TDI website. The Commissioner may suspend recognition of a jurisdiction that is no longer qualified and will provide notice of the suspension on the TDI website.

(b) The Commissioner will evaluate the reinsurance supervisory system of the non-United States jurisdiction and determine whether the jurisdiction is eligible to be recognized as a qualified jurisdiction, both initially and on an ongoing basis. The Commissioner must consider the rights, benefits, and the extent of reciprocal recognition afforded by the non-United States jurisdiction to assuming insurers licensed and domiciled in the United States. A qualified jurisdiction must agree to share information and cooperate with the Commissioner with respect to all certified assuming insurers domiciled within that jurisdiction. A jurisdiction may not be considered to be a qualified jurisdiction if the Commissioner has determined that it does not adequately and promptly enforce final United States judgments or arbitration awards. The Commissioner may, in the Commissioner's discretion, consider additional factors in determining whether to recognize a qualified jurisdiction, including:

(1) the framework under which the assuming insurer is regulated;

(2) the structure and authority of the domiciliary regulator with regard to solvency regulation requirements and financial surveillance;

(3) the substance of financial and operating standards for assuming insurers in the domiciliary jurisdiction;

(4) the form and substance of financial reports required to be filed or made publicly available by assuming insurers in the domiciliary jurisdiction and the accounting principles used;

(5) the domiciliary regulator's willingness to cooperate with United States regulators in general and the Commissioner in particular;

(6) the history of performance by assuming insurers in the domiciliary jurisdiction;

(7) any relevant international standards or guidance with respect to mutual recognition of reinsurance supervision adopted by the International Association of Insurance Supervisors or successor organization; and

(8) any other matters deemed relevant by the Commissioner.

(c) The Commissioner will consider the list of qualified jurisdictions published through the NAIC Committee Process in developing a list of qualified jurisdictions. If the Commissioner includes a jurisdiction as qualified that does not appear on the NAIC list of qualified jurisdictions, the Commissioner will provide documented justification for the approval with respect to the criteria provided under subsection (b) of this section.

(d) A United States jurisdiction that meets the requirements for accreditation under the NAIC financial standards and accreditation program will be deemed to be a qualified jurisdiction in accordance with Insurance Code §493.1035(f) and included on the list.

Source Note: The provisions of this §7.624 adopted to be effective June 19, 2018, 43 TexReg 3888