PROPOSED RULES CHAPTER 45-03-07.1 CREDIT FOR REINSURANCE .

2y ago
36 Views
2 Downloads
517.92 KB
51 Pages
Last View : 2m ago
Last Download : 2m ago
Upload by : Maxine Vice
Transcription

6/12/15PROPOSED RULESCHAPTER 45-03-07.1CREDIT FOR REINSURANCE MODEL 5-03-07.1-1045-03-07.1-11Credit for Reinsurance - Reinsurer Licensed in This StateCredit for Reinsurance - Accredited ReinsurersCredit for Reinsurance - Reinsurer Domiciled in Another StateCredit for Reinsurance - Reinsurers Maintaining Trust FundsCredit for Reinsurance – Certified ReinsurersCredit for Reinsurance Required by LawAsset or Reduction From Liability for Reinsurance Ceded to anUnauthorized Assuming Insurer Not Meeting the Requirements ofSections 45-03-07.1-01 Through 45-03-07.1-05Trust Agreements Qualified Under Section 45-03-07.1-06Letters of Credit Qualified Under Section 45-03-07.1-06Other SecurityReinsurance ContractContracts Affected45-03-07.1-01. Credit for reinsurance - Reinsurer licensed in this state.Pursuant to subsection 1 of North Dakota Century Code section 26.1-31.2-01, thecommissioner shall allow credit for reinsurance ceded by a domestic insurer to anassuming insurer that was licensed in this state as of any date on which statutoryfinancial statement credit for reinsurance is claimed.History: Effective October 1, 1995; amended effective October 1, 2002; January 1,2016.General Authority: NDCC 26.1-31.2-04Law Implemented: NDCC 26.1-31.245-03-07.1-02. Credit for reinsurance - Accredited reinsurers.1.Pursuant to subsection 2 of North Dakota Century Code section 26.131.2-01, the commissioner shall allow credit for reinsurance ceded by adomestic insurer to an assuming insurer that is accredited as a reinsurerin this state as of any the date on which statutory financial statement creditfor reinsurance is claimed. An accredited reinsurer is one which must:1

(1)a.Files File a properly executed form AR-1 as evidence of itssubmission to this state’s jurisdiction and to this state’s authority toexamine its books and records;b.Files File with the commissioner a certified copy of a certificate ofauthority or other acceptable evidence that it is licensed to transactinsurance or reinsurance in at least one state, or, in the case of aUnited States branch of an alien assuming insurer, is enteredthrough and licensed to transact insurance or reinsurance in atleast one state;c.Files File annually with the commissioner a copy of its annualstatement filed with the insurance department of its state ofdomicile or, in the case of an alien assuming insurer, with the statethrough which it is entered and in which it is licensed to transactinsurance or reinsurance, and a copy of its most recent auditedfinancial statement; andd.Maintains Maintain a surplus as regards policyholders in an amountnot less than twenty million dollars and whose accreditation has notbeen denied by the commissioner within ninety days of itssubmission; or(2)2.Maintains a surplus as regards policyholders of less thantwenty million dollars, and whose accreditation has beenapproved by the commissioner , or obtain the affirmativeapproval of the commissioner upon a finding that it hasadequate financial capacity to meet its reinsuranceobligations and is otherwise qualified to assume reinsurancefrom domestic insurers.If the commissioner determines that the assuming insurer has failed tomeet or maintain any of these qualifications, the commissioner may uponwritten notice and opportunity for hearing, suspend or revoke theaccreditation. Credit may not be allowed a domestic ceding insurer underthis section if the assuming insurer’s accreditation has been revoked bythe commissioner, or if the reinsurance was ceded while the assuminginsurer’s accreditation was under suspension by the commissioner.History: Effective October 1, 1995; amended effective October 1, 2002; January 1,2016.General Authority: NDCC 26.1-31.2-04Law Implemented: NDCC 26.1-31.245-03-07.1-03. Credit for reinsurance - Reinsurer domiciled in another state.2

1.2.Pursuant to subsection 3 of North Dakota Century Code section 26.131.2-01, the commissioner shall allow credit for reinsurance ceded by adomestic insurer to an assuming insurer that as of the any date of theceding insurer’s on which statutory financial statement credit forreinsurance is claimed:a.Is domiciled and licensed in, or, in the case of a United Statesbranch of an alien assuming insurer, is entered through andlicensed in, a state that employs standards regarding credit forreinsurance substantially similar to those applicable under NorthDakota Century Code chapter 26.1-31.2 and this chapter;b.Maintains a surplus as regards policyholders in an amount not lessthan twenty million dollars; andc.Files a properly executed form AR-1 with the commissioner asevidence of its submission to this state’s authority to examine itsbooks and records.The provisions of this section relating to surplus as regards policyholdersdo not apply to reinsurance ceded and assumed pursuant to poolingarrangements among insurers in the same holding company system. Asused in this section, "substantially similar" standards means credit forreinsurance standards which the commissioner determines equal orexceed the standards of North Dakota Century Code chapter 26.1-31.2and this chapter.History: Effective October 1, 1995; amended effective October 1, 2002; January 1,2016.General Authority: NDCC 26.1-31.2-04Law Implemented: NDCC 26.1-31.245-03-07.1-04. Credit for reinsurance - Reinsurers maintaining trust funds.1.Pursuant to subsection 4 of North Dakota Century Code section 26.131.2-01, the commissioner shall allow credit for reinsurance ceded by adomestic insurer to an assuming insurer that, as of any date on whichstatutory financial statement credit for reinsurance is claimed, andthereafter for so long as credit for reinsurance is claimed, maintains a trustfund in an amount prescribed in this section in a qualified United Statesfinancial institution as defined in subsection 2 of North Dakota CenturyCode section 26.1-31.2-03, for the payment of the valid claims of itsUnited States policyholders and domiciled ceding insurers, their assignsand successors in interest. The assuming insurer shall report annually to3

the commissioner substantially the same information as that required to bereported on the national association of insurance commissioners annualstatement form by licensed insurers, to enable the commissioner todetermine the sufficiency of the trust fund.2.The following requirements apply to the following categories of assuminginsurer:a.The trust fund for a single assuming insurer must consist of funds intrust in an amount not less than the assuming insurer’s liabilitiesattributable to reinsurance ceded by United States domiciledinsurers, and in addition, the assuming insurer shall maintain atrusteed surplus of not less than twenty million dollars, except asprovided in subdivision b.b.At any time after the assuming insurer has permanentlydiscontinued underwriting new business secured by the trust for atleast three full years, the commissioner with principal regulatoryoversight of the trust may authorize a reduction in the requiredtrusteed surplus, but only after a finding, based on an assessmentof the risk, that the new required surplus level is adequate for theprotection of United States ceding insurers, policyholders andclaimants in light of reasonably foreseeable adverse lossdevelopment. The risk assessment may involve an actuarialreview, including an independent analysis of reserves and cashflows, and shall consider all material risk factors, including whenapplicable the lines of business involved, the stability of theincurred loss estimates and the effect of the surplus requirementson the assuming insurer’s liquidity or solvency. The minimumrequired trusteed surplus may not be reduced to an amount lessthan thirty percent of the assuming insurer’s liabilities attributable toreinsurance ceded by United States ceding insurers covered by thetrust.c.(1)The trust fund for a group, including incorporated andindividual unincorporated underwriters, must consist of :(a)For reinsurance ceded under reinsurance agreementswith an inception, amendment or renewal date on orafter January 1, 1993, funds in trust in an amount notless than the group’s aggregate respectiveunderwriters’ several liabilities attributable to businesswritten in ceded by the United States and, indomiciled ceding insurers to any underwriter of thegroup;4

(2)c.d.(1)(b)For reinsurance ceded under reinsurance agreementswith an inception date on or before December 31,1992, and not amended or renewed after that date,notwithstanding the other provisions of this chapter,funds in trust in an amount not less than therespective underwriters’ several insurance andreinsurance liabilities attributable to business writtenin the United States; and(c)In addition to these trusts, the group shall maintain atrusteed surplus of which one hundred million dollarsmust be held jointly for the benefit of the UnitedStates domiciled ceding insurers of any member ofthe group for all the years of account.The incorporated members of the group may not beengaged in any business other than underwriting as amember of the group and must be subject to the same levelof regulation solvency control by the group’s domiciliaryregulator as are the unincorporated members. The groupshall, within ninety days after its financial statements are dueto be filed with the group’s domiciliary regulator, provide tothe commissioner:(a)An annual certification by the group’s domiciliaryregulator of the solvency of each underwriter memberof the group; or(b)If a certification is unavailable, a financial statementprepared by independent public accountants, of eachunderwriter member of the group.The trust fund for a group of incorporated insurers undercommon administration, whose members possess aggregatepolicyholders surplus of ten billion dollars, calculated andreported in substantially the same manner as prescribed bythe annual statement instructions and accounting practicesand procedures manual of the national association ofinsurance commissioners, and which has continuouslytransacted an insurance business outside the United Statesfor at least three years immediately prior to makingapplication for accreditation, must:(a)Consist of funds in trust in an amount not less thanthe assuming insurers’ several liabilities attributable tobusiness ceded by United States domiciled ceding5

insurers to any members of the group pursuant toreinsurance contracts issued in the name of such thegroup; and(2)3.a.(b)Maintain a joint trusteed surplus of which one hundredmillion dollars shall be held jointly for the benefit ofUnited States domiciled ceding insurers of anymember of the group; and(c)File a properly executed form AR-1 as evidence of thesubmission to this state’s authority to examine thebooks and records of any of its members and shallcertify that any member examined will bear theexpense of any such examination.Within ninety days after the statements are due to be filedwith the group’s domiciliary regulator, the group shall file withthe commissioner an annual certification of each underwritermember’s solvency by the members’ domiciliary regulatorsand financial statements, prepared by independent publicaccountants, of each underwriter member of the group.Credit for reinsurance shall not be granted unless the form of thetrust and any amendments to the trust have been approved byeither the commissioner of the state where the trust is domiciled orthe commissioner of another state who, pursuant to the terms of thetrust instrument, has accepted responsibility for regulatory oversightof the trust. The form of the trust and any trust amendments alsoshall be filed with the commissioner of every state in which theceding insurer beneficiaries of the trust are domiciled. The trustinstrument must provide that:(1)Contested claims shall be valid and enforceable out of fundsin trust to the extent remaining unsatisfied thirty days afterentry of the final order of any court of competent jurisdictionin the United States;(2)Legal title to the assets of the trust shall be vested in thetrustee for the benefit of the grantor’s United Statespolicyholders and ceding insurers, their assigns andsuccessors in interest;(3)The trust shall be subject to examination as determined bythe commissioner;6

b.(4)The trust shall remain in effect for as long as the assuminginsurer, or any member or former member of a group ofinsurers, shall have outstanding obligations underreinsurance agreements subject to the trust; and(5)No later than February twenty-eighth of each year, thetrustees of the trust shall report to the commissioner inwriting setting forth the balance in the trust and listing thetrust’s investments at the preceding yearend, and shallcertify the date of termination of the trust, if so planned, orcertify that the trust shall not expire prior to the next followingDecember thirty-first.Credit for reinsurance will not be granted unless the assuminginsurer agrees in the trust agreement to the following conditions:(1)Notwithstanding any other provisions in the trust instrument,if the trust fund is inadequate because it contains an amountless than the amount required by this subsection or if thegrantor of the trust has been declared insolvent or placedinto receivership, rehabilitation, liquidation, or similarproceedings under the laws of its state or country ofdomicile, the trustee shall comply with an order of thecommissioner with regulatory oversight over the trust or withan order of a court of competent jurisdiction directing thetrustee to transfer to the commissioner with regulatoryoversight over the trust or other designated receiver all of theassets of the trust fund.(2)The assets shall be distributed by and claims shall be filedwith and valued by the commissioner with regulatoryoversight over the trust in accordance with the laws of thestate in which the trust is domiciled applicable to theliquidation of domestic insurance companies.(3)If the commissioner with regulatory oversight over the trustdetermines that the assets of the trust fund or any partthereof are not necessary to satisfy the claims of the UnitedStates beneficiaries of the trust, the commissioner withregulatory oversight over the trust shall return the assets, orany part thereof, to the trustee for distribution in accordancewith the trust agreement.(4)The grantor shall waive any right otherwise available to itunder United States law that is inconsistent with thisprovision.7

4.For purposes of this rule section, the term "liabilities" means the assuminginsurer’s gross liabilities attributable to reinsurance ceded by UnitedStates domiciled insurers excluding liabilities that are not otherwisesecured by acceptable means, and, includes:a.b.5.For business ceded by domestic insurers authorized to writeaccident and health and property and casualty insurance:(1)Losses and allocated loss expenses paid by the cedinginsurer, recoverable from the assuming insurer;(2)Reserves for losses reported and outstanding;(3)Reserves for losses incurred but not reported;(4)Reserves for allocated loss expenses; and(5)Unearned premiums.For business ceded by domestic insurers authorized to write life,health, and annuity insurance:(1)Aggregate reserves for life policies and contracts net ofpolicy loans and net due and deferred premiums;(2)Aggregate reserves for accident and health policies;(3)Deposit funds and other liabilities without life or disabilitycontingencies; and(4)Liabilities for policy and contract claims.Assets deposited in trusts established pursuant to North Dakota CenturyCode section 26.1-31.2-01 and this section shall be valued according totheir current fair market value and shall consist only of cash in UnitedStates dollars, certificates of deposit issued by a United States financialinstitution as defined in subsection 1 of North Dakota Century Codesection 26.1-31.2-03, clean, irrevocable, unconditional, and "evergreen"letters of credit issued or confirmed by a qualified United States financialinstitution, as defined in subsection 1 of North Dakota Century Codesection 26.1-31.2-03, and investments of the type specified in thissubsection, but investments in or issued by an entity controlling, controlledby, or under common control with either the grantor or beneficiary of thetrust shall not exceed five percent of total investments. No more thantwenty percent of the total of the investments in the trust may be foreign8

investments authorized under paragraph 5 of subdivision a, subdivision c,paragraph 2 of subdivision f, and subdivision g, and no more than tenpercent of the total of the investments in the trust may be securitiesdenominated in foreign currencies. For purposes of applying the precedingsentence, a depository receipt denominated in United States dollars andrepresenting rights conferred by a foreign security shall be classified as aforeign investment denominated in a foreign currency. The assets of atrust established to satisfy the requirements of North Dakota CenturyCode section 26.1-31.2-01 shall be invested only as follows:a.b.Government obligations that are not in default as to principal orinterest, that are valid and legally authorized, and that are issued,assumed, or guaranteed by:(1)The United States or by any agency or instrumentality of theUnited States;(2)A state of the United States;(3)A territory, possession, or other governmental unit of theUnited States;(4)An agency or instrumentality of a governmental unit referredto in paragraphs 2 and 3 if the obligations shall be by law,statutory or otherwise, payable, as to both principal andinterest, from taxes levied or by law required to be levied orfrom adequate special revenues pledged or otherwiseappropriated or by law required to be provided for makingthese payments, but shall not be obligations eligible forinvestment under this paragraph if payable solely out ofspecial assessments on properties benefited by localimprovements; or(5)The government of any other country that is a member of theorganization for economic cooperation and development andwhose government obligations are rated A or higher, or theequivalent, by a rating agency recognized by the securitiesvaluation office of the national association of insurancecommissioners.Obligations that are issued in the United States, or that are dollardenominated and issued in a non-United States market, by asolvent United States institution other than an insurance companyor that are assumed or guaranteed by a solvent United Statesinstitution other than an insurance company and that are not indefault as to principal or interest if the obligations:9

(1)Are rated A or higher or the equivalent by a securities ratingagency recognized by the securities valuation office of thenational association of insurance commissioners, or if not sorated, are similar in structure and other material respects toother obligations of the same institution that are so rated;(2)Are insured by at least one authorized insurer, other than theinvesting insurer or a parent, subsidiary, or affiliate of theinvesting insurer, licensed to insure obligations in this stateand, after considering the insurance, are rated AAA or theequivalent by a securities rating agency recognized by thesecurities valuation office of the national association ofinsurance commissioners; or(3)Have been designated as class one or class two by thesecurities valuation office of the national association ofinsurance commissioners.c.Obligations issued, assumed, or guaranteed by a solvent nonUnited States institution chartered in a country that is a member ofthe organization for economic cooperation and development orobligations of United States corporations issued in a non-UnitedStates currency, provided that in either case the obligations arerated A or higher, or the equivalent, by a rating agency recognizedby the securities

Credit for reinsurance - Reinsurers maintaining trust funds. 1. Pursuant to subsection 4 of North Dakota Century Code section 26.1-31.2-01, the commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that, as of any date on which statutory financial statement credit for reinsurance is claimed, and

Related Documents:

Part One: Heir of Ash Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Chapter 28 Chapter 29 Chapter 30 .

TO KILL A MOCKINGBIRD. Contents Dedication Epigraph Part One Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Part Two Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18. Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26

DEDICATION PART ONE Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 PART TWO Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 .

Rules database is the basis of the rules engine and it is a collection of rules files which are established by rules engine. Rules database is maintained by rules management and it is used by rules engine. (5) Rules Matching The first step is modelling with rules files in rules database. Then, it will match rules with users'

Classification Rules -MDR, Annex VIII MDR MDD Rules 1 -4: Non-invasive devices Rules 5 -8 : Invasive devices Rules 9 -13 : Active Devices Rules 14 -22 : Special rules Rules 1 -4 : Non-invasive devices Rules 5 -8 : Invasive devices Rules 9 -12 : Active devices Rules 13 -18 : Special rules

About the husband’s secret. Dedication Epigraph Pandora Monday Chapter One Chapter Two Chapter Three Chapter Four Chapter Five Tuesday Chapter Six Chapter Seven. Chapter Eight Chapter Nine Chapter Ten Chapter Eleven Chapter Twelve Chapter Thirteen Chapter Fourteen Chapter Fifteen Chapter Sixteen Chapter Seventeen Chapter Eighteen

18.4 35 18.5 35 I Solutions to Applying the Concepts Questions II Answers to End-of-chapter Conceptual Questions Chapter 1 37 Chapter 2 38 Chapter 3 39 Chapter 4 40 Chapter 5 43 Chapter 6 45 Chapter 7 46 Chapter 8 47 Chapter 9 50 Chapter 10 52 Chapter 11 55 Chapter 12 56 Chapter 13 57 Chapter 14 61 Chapter 15 62 Chapter 16 63 Chapter 17 65 .

HUNTER. Special thanks to Kate Cary. Contents Cover Title Page Prologue Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter