For purposes of this subchapter, the following definitions shall apply:
(2) Domiciliary State
The term “reinsurance” means the assumption by an insurer of all or part of a risk undertaken originally by another insurer.
(A) In generalThe term “reinsurer” means an insurer to the extent that the insurer—
is principally engaged in the business of reinsurance;
does not conduct significant amounts of direct insurance as a percentage of its net premiums; and