BEFORE THE COMMISSIONER OF SECURITIES AND INSURANCE

MONTANA STATE AUDITOR

 

In the matter of the adoption of New Rules I through XXXVII pertaining to Credit for Reinsurance, and the repeal of ARM 6.6.3801 through 6.6.3809 pertaining to Credit for Reinsurance, and ARM 6.6.3901 through 6.6.3907 pertaining to Letters of Credit Used in Reduction of Liability for Reinsurance Ceded

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NOTICE OF ADOPTION AND REPEAL

TO: All Concerned Persons

 

1. On September 23, 2016, the Commissioner of Securities and Insurance, Montana State Auditor (CSI), published MAR Notice No. 6-226 pertaining to the public hearing on the proposed adoption and repeal of the above-stated rules at page 1596 of the 2016 Montana Administrative Register, Issue Number 18.

 

2. The CSI has adopted New Rule I (6.6.3810), II (6.6.3811), III (6.6.3812), IV (6.6.3813), V (6.6.3814), VI (6.6.3821), VII (6.6.3822), VIII (6.6.3823), IX (6.6.3824), X (6.6.3825), XI (6.6.3826), XII (6.6.3827), XIII (6.6.3828), XIV (6.6.3829), XV (6.6.3830), XVI (6.6.3831), XVII (6.6.3832), XVIII (6.6.3841), XIX (6.6.3842), XX (6.6.3843), XXI (6.6.3844), XXII (6.6.3845), XXIII (6.6.3846), XXIV (6.6.3847), XXV (6.6.3848), XXVI (6.6.3849), XXVII (6.6.3850), XXVIII (6.6.3860), XXIX (6.6.3861), XXX (6.6.3862), XXXI (6.6.3863), XXXII (6.6.3864), XXXIII (6.6.3865), XXXIV (6.6.3866), XXXV (6.6.3867), XXXVI (6.6.3868), and XXXVII (6.6.3869) exactly as proposed.

 

3. The CSI has repealed ARM 6.6.3801 through 6.6.3809, and ARM 6.6.3901 through 6.6.3907 exactly as proposed.

 

4. On October 19, 2016, a public hearing was held on the proposed adoption and repeal of the above-stated rules.  Two comments were received by the October 26, 2016, deadline. A summary of the comments received and the CSI's responses are as follows:

 

COMMENT No. 1:  A comment was received from a reinsurance provider. It expressed knowledge of the process resulting in the model rules regarding credit for reinsurance provided by the National Association of Insurance Commissioners. The commenter stated appreciation for adoption of these rules in Montana, which it considers beneficial to the United States' "competitive position in the international insurance market."

 

RESPONSE No. 1: The CSI acknowledges receipt of the comment in support and appreciates all public participation in the rulemaking process.

 

COMMENT No. 2: A comment was received from the American Council of Life Insurers, an insurance company trade association. The commenter stated strong support for adoption of these model rules in Montana.

 

RESPONSE No. 2: The CSI acknowledges receipt of the comment in support and appreciates all public participation in the rulemaking process.

 

 

/s/ Michael A. Kakuk                              /s/ Jesse Laslovich                     

Michael A. Kakuk                                  Jesse Laslovich

Rule Reviewer                                       Chief Counsel

                                                                     

Certified to the Secretary of State November 14, 2016.