Federal law preempts the extraterritorial application of state credit
for reinsurance law but permits a state to enact reinsurance collateral reforms on an individual basis if the state is accredited. The bill enacts a model law adopted by the National Association of Insurance Commissioners (NAIC), which is necessary to maintain the continued
accreditation of the Colorado division of insurance with the NAIC and makes Colorado's reinsurance statutes substantially similar to those found in other states. The model law specifies the grounds upon which a domestic insurer can get credit in Colorado for reinsurance provided by an assuming insurer that is domiciled in an extraterritorial jurisdiction and thereby avoids federal preemption that would otherwise occur by 2022.
