Last week, we wrote about pending legislation in Massachusetts that would realign the state’s reinsurance regulations to make them more consistent with the increasingly global nature of insurance and reinsurance markets. The Joint Committee on Financial Services earlier today favorably reported HB 881, An Act Relative to Reinsurance Requirements, which closely tracks the NAIC’s Revised Credit for Reinsurance Model Law.
The committee’s report included a minor amendment to the text of the bill, as follows:
SECTION 6. Section 20A of chapter 175 of the General Laws, subsection (2), is hereby amended by inserting after paragraph (C) the following new paragraph:
(D) Any other form of security acceptable to the commissioner.
The measure now heads to the House and Senate Committees on Ways and Means for further consideration. Assuming further favorable reports, the respective chambers’ leadership committees will then schedule the matter for consideration and votes on final passage. We will continue to monitor and report.