What is an accredited reinsurer?
Accredited reinsurer” means an unauthorized insurer who is accepted by the Commissioner to act as a reinsurer in the State under Insurance Article,§5-905 § 5-906, Annotated Code of Maryland.
What is the difference between insurer and reinsurer?
In simple terms, insurance is the act of indemnifying the risk, caused to another person. Conversely, reinsurance is when the insurance company takes up insurance to guard itself against the risk of loss.
Why would a reinsurer be required to provide collateral?
Many reinsurance transactions are collateral-backed to mitigate against counterparty default risk in respect of the reinsurer. The amount of collateral required to back a reinsurance transaction will depend on the type of reinsurance and the reinsurer’s creditworthiness.
Why would collateral be required for a reinsurer?
What does licensed for reinsurance mean?
Licensed for reinsurance only applies to reinsurance brokers who negotiate reinsurance cessions on behalf of a ceding insurer, as well as reinsurance managers who manage the reinsurance business of a reinsurer. States may separate out the type of reinsurance company with which an insurer is able to work.
How do I apply for a reinsurance license?
Complete Section I of the Uniform Application Checklist for Certified Reinsurers and file all of the necessary corresponding exhibits detailed in that section of the checklist. Applicants that have not been certified as a reinsurer in an NAIC accredited jurisdiction should file a full application.
What is the difference between an authorized reinsurer and reinsurers?
A reinsurer that is licensed to accept reinsurance in a state or territory is an Authorized Reinsurer. Reinsurers that are not licensed in the U.S., often referred to as “alien” or offshore companies, must post 100% collateral to secure the transaction, unless they are a Certified Reinsurer or a Reciprocal Jurisdiction Reinsurer.
How does a company become a certified reinsurer?
Companies that are domiciled in Qualified Jurisdictions can become Certified Reinsurers after completing additional review by the states, and this status allows the reinsurers to reduce the collateral required.