Revise reinsurance laws

2025 Regular Session

LC 2741 aims to revise and modernize the state's reinsurance laws, updating the regulatory framework for reinsurers, licensing, and oversight.

(LC) Draft Died in Process

#insurance

LC 2741 — Revise reinsurance laws

Overview
- Title: Revise reinsurance laws
- Bill number: LC 2741
- Subject: Insurance
- Purpose (as implied by title): To revise the state’s reinsurance laws, updating the regulatory framework governing reinsurance activities.
- Status: Draft Died in Process
- Introduced: December 11, 2024
- Classification: bill
- Legislative actions:
- 2024-12-11: Drafter Assigned
- 2024-12-11: Draft On Hold
- 2025-05-27: Draft Died in Process

What this bill seeks to do
- Based on the title alone, the bill’s primary aim is to revise and modernize the state’s reinsurance statutes. The available information does not include the bill’s specific provisions or text.
- Without the actual language, it is not possible to confirm exact changes to licensing, capital or solvency requirements, reporting, examinations, or regulatory authority.

Key provisions (noted limitations)
- Text not provided in the summary available here; therefore, specific changes cannot be itemized.
- In a typical “revised reinsurance laws” measure, one might expect topics such as:
- Definitions related to reinsurance activities and providers
- Licensing or registration requirements for reinsurers
- Financial requirements (e.g., capital, surplus, or solvency standards)
- Reporting, exam, and regulatory oversight powers for the insurance department
- Standards for risk transfer, collateral, and retrocession
- Prohibited practices or affiliate transactions
- Transition provisions and effective date
- Important: The above topics are common in reinsurance-law revisions but are not confirmed for LC 2741 without the actual text.

Who would be affected
- Insurers and reinsurers operating in the state, including foreign or affiliate reinsurers
- Insurance regulators and department staff responsible for oversight, reporting, and examinations
- Insurance brokers and consultants facilitating reinsurance transactions
- Policyholders indirectly affected through the regulatory environment and reinsurance availability/cost

Procedural and timeline notes
- Introduced: December 11, 2024
- Drafter Assigned: December 11, 2024
- On Hold: December 11, 2024
- Draft Died in Process: May 27, 2025
- Implication: There is no indication that the bill advanced to committee or became law. As drafted, the proposal did not progress and is considered dead in the process unless reintroduced with new language.

Impact considerations if reintroduced
- Regulatory alignment: Could modernize oversight and align with best practices in reinsurance regulation.
- Compliance costs: May impose new licensing, reporting, or capital requirements on reinsurers and affected entities.
- Market effects: Potential changes in reinsurance availability or pricing depending on new standards and risk-transfer rules.

Next steps
- For a precise, actionable summary, access to the full bill text is needed. If you can share the statutory language or a link to the bill’s text, I can provide a detailed provision-by-provision analysis and a more exact assessment of impacts.