On July 13, 2018 Alaska became the last state to incorporate amendments to the NAIC Credit for Reinsurance Model Law into its insurance code when Governor Bill Walker (I) signed House Bill 401 into law. As explained by the state Department of Commerce, Community, and Economic Development's legislative analysis, the bill allows domestic ceding insurers to receive credit for reinsurance either as an asset or liability deduction based on the reinsured ceded so long as the assuming insurer satisfies certain requirements. The requirements provide alternate ways to qualify ceding insurers to receive such credit, including when the assuming insurers: are licensed to transact insurance or reinsurance business in Alaska; are accredited as reinsurers; are domiciled in states accredited by the NAIC; maintain trust funds in qualified U.S. financial institutions and satisfy related requirements; are certified as reinsurers in Alaska and secure obligations subject to additional requirements; and more. Furthermore, the law implements principle based reserving for policies and contracts issued on or after the valuation manual's operative date. Pursuant to Alaska law the bill took effect immediately upon the Governor's signature.
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