Title V of the Dodd-Frank Act authorizes the Minister of Finance and the Office of the United States Trade Representative (USTR) to negotiate, in conjunction with one or more foreign governments, authorities or regulators, a “covered agreement” on behalf of the United States. Finally, it should be noted that the covered agreements apply to cross-border reinsurance between US and EU/UK insurers and do not apply to reinsurers and reinsurers operating from or from other countries. In order to discourage future covered agreements with other countries, NAIC has adopted further changes to reinsurance models that extend the guarantee provisions of the covered agreement to reinsurers residing in “reciprocal jurisdictions” within or outside the EU or the UK. The Federal Insurance Office Act of 2010 (FIO Act), passed as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), established the Federal Insurance Office (FIO) within the U.S. Treasury Department and authorized the U.S. Treasury and the United States to negotiate “covered agreements” with one or more foreign governments or authorities for the recognition of prudential measures relating to insurance or reinsurance activities, which achieve a level of protection for insurance or reinsurance consumers, which essentially corresponds to the level of protection acquired by the state`s insurance or reinsurance rules. In July 2017, the Treasury and USTR announced their intention to sign the covered agreement, while making a “political statement” from the United States addressing the main concerns of industry and regulatory stakeholders. The EU made a similar announcement, confirming the European Council`s earlier decision to move the agreement forward. With regard to the exchange of information, the supervisory authorities of both parties are invited to cooperate in the exchange of information in accordance with the practices set out in the agreement attached to the agreement. Within the EU, Solvency II allows the European Commission to adopt equivalency rules for third countries with regard to certain areas of prudential regulation.
- Post Author:admin
- Post published:December 8, 2020
- Post Category:Uncategorized