Skip to Main Content
<< Back | Return to Main COMAR Search Page

29 records match your request.

FileAbstract
31.05.08.00.htm 31.05.08.00. Title 31 MARYLAND INSURANCE ADMINISTRATION Subtitle 05 ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS Chapter 08 Credit for Reinsurance Authority: Insurance Article, §1-101(jj) 2-109, 2-205, 2-209, and 5-901―5-916, Annotated Code of Maryland
31.05.08.01.htm 31.05.08.01. 01 Applicability.. This chapter is applicable to any domestic authorized insurer who obtains reinsurance for itself from another insurer for all or part of its insurance risk.
31.05.08.02.htm 31.05.08.02. 02 Definitions.. A. In this chapter, the following terms have the meanings indicated.. B. Terms Defined.. 1) "Accredited reinsurer" means an unauthorized insurer who is accepted by the Commissioner to act as a reinsurer in the State under Insurance Article, §5-906, Annotated Code of Maryland.2) "Beneficiary" means:. a) The entity for whose sole benefit the trust has been established; or. b) Any successor of the beneficiary by operation of law or, if a court of l
31.05.08.03.htm 31.05.08.03. 03 Credit for Reinsurance.. The Commissioner shall allow a domestic authorized insurer credit as an asset or deduction from liability for reinsurance that the insurer obtains, if the reinsurance is obtained:A. From an insurer that was authorized in this State as of any date on which the statutory financial statement credit for reinsurance is claimed;B. From an accredited reinsurer pursuant to Regulations .04―07 of this chapter;. C. From a reinsurer maintaining trust funds for mu
31.05.08.04.htm 31.05.08.04. 04 Approval Required for Accreditation of Reinsurer.. An unauthorized insurer may not act as an accredited reinsurer in the State, unless the Commissioner accepts the insurer as a reinsurer under Insurance Article, §5-906, Annotated Code of Maryland.
31.05.08.05.htm 31.05.08.05. 05 Requirements for Accredited Reinsurer.. A. The Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is accredited as a reinsurer in this State as of the date on which statutory financial statement credit for reinsurance is claimed.B. For initial eligibility as an accredited reinsurer, an applicant shall file with the Commissioner:1) An appointment of the Commissioner as its attorney to receive legal process issued against the ap
31.05.08.06.htm 31.05.08.06. 06 Examination of Accredited Reinsurer.. Whenever the Commissioner considers it advisable, the Commissioner shall examine the affairs, transactions, accounts, records, and assets of each accredited reinsurer.
31.05.08.07.htm 31.05.08.07. 07 Suspension or Revocation of Accreditation.. Contracts not qualifying for credit after suspension or revocation beyond secured obligations:. A. While a reinsurer’s accreditation or certification is suspended, a reinsurance contract issued or renewed after the effective date of the suspension does not qualify for credit except to the extent the reinsurer’s obligations under the contract are secured in accordance with Insurance Article, §5-914, Annotated Code of Maryland.
31.05.08.08.htm 31.05.08.08. 08 Credit for Reinsurance ― Reinsurers Maintaining Trust Funds for Multiple Cedents ― General Requirements.A. The Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer which, as of any date on which statutory financial statement credit for reinsurance is claimed, and thereafter for so long as credit for reinsurance is claimed, maintains a trust fund in an amount prescribed below in a qualified U.S. financial institution, for the paym
31.05.08.09.htm 31.05.08.09. 09 Credit for Reinsurance ― Reinsurers Maintaining Trust Funds for Multiple Cedents ― Trusts.. A. Credit for reinsurance may not be granted unless the form of the trust and any amendments to the trust have been approved by either the insurance regulatory agency of the state where the trust is domiciled or the insurance regulatory agency of another state who, pursuant to the terms of the trust instrument, has accepted responsibility for regulatory oversight of the tr
31.05.08.10.htm 31.05.08.10. 10 Credit for Reinsurance ― Reinsurers Maintaining Trust Funds for Multiple Cedents ― Assets Deposited in the Trust.A. Assets deposited in the trust shall be valued according to their current fair market value and shall consist only of cash in U.S. dollars, certificates of deposit issued by a qualified U.S. financial institution, clean, irrevocable, unconditional and "evergreen" letters of credit issued or confirmed by a qualified U.S. financial institution, and
31.05.08.11.htm 31.05.08.11. 11 Credit for Reinsurance―Reinsurers Maintaining Trust Funds for Multiple Cedents―Additional Security.A specific security provided to a ceding insurer by an assuming insurer pursuant to Regulation .14 of this chapter shall be applied, until exhausted, to the payment of liabilities of the assuming insurer to the ceding insurer holding the specific security prior to, and as a condition precedent for, presentation of a claim by the ceding insurer for payment by a trustee of a
31.05.08.12.htm 31.05.08.12. 12 Credit for Reinsurance Required by Law.. A. In this regulation, "jurisdiction" means a state, district, or territory of the United States and any lawful national government.B. The Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Regulations .03―05, .08―11, .14, and .24―27 of this chapter, but only as to the insurance of risks located in jurisdictions where the reinsurance is required by t
31.05.08.13.htm 31.05.08.13. 13 Credit Allowed a Foreign Ceding Insurer ― Repealed..
31.05.08.14.htm 31.05.08.14. 14 Reduction from Liability for Reinsurance. A. Notwithstanding Regulations .03―13 of this chapter and subject to the requirements of this regulation, the Commissioner shall allow a ceding insurer a reduction from liability for reinsurance obtained from an assuming insurer for the payment of the obligations under a reinsurance contract.B. Requirements.. 1) The Commissioner shall allow a ceding insurer a reduction from liability for the reinsurance ceded in an amount equal to t
31.05.08.15.htm 31.05.08.15. 15 Required Standards for Trust Agreements Under Regulation .14.. A. In General. A trust agreement established to meet the requirements of Regulation .14 of this chapter shall comply with this regulation.B. Parties to Trust Agreement.. 1) A trust agreement shall be entered into between a beneficiary, a grantor, and a trustee, which shall be a qualified U.S. financial institution.2) A trust agreement shall be established for the sole benefit of the beneficiary..
31.05.08.16.htm 31.05.08.16. 16 Permitted Conditions for Trust Agreements.. A. In General. A trust agreement established to meet the requirements of Regulation .14 of this chapter may include the provisions allowed under this regulation.B. Resignation and Removal of Trustee.. 1) Subject to §B(2) of this regulation, a trust agreement may provide that the:. a) Trustee may resign by delivering to the beneficiary and grantor written notice of resignation, effective not less than 90 days after receipt by the
31.05.08.17.htm 31.05.08.17. 17 Trust Agreement Established in Conjunction with Reinsurance Contracts Covering Risks Other than Life, Annuities, and Accident and Health.A. Use of Amounts Drawn on Trust Account. Notwithstanding any provision of Regulation .15 of this chapter, when a trust agreement is established to meet the requirements of Regulation .14 of this chapter in conjunction with a reinsurance contract covering risks other than life, annuities, or accident and health, where it is
31.05.08.18.htm 31.05.08.18. 18 Trust Agreement Established in Conjunction with Reinsurance Contracts Covering Life, Annuities, or Accident and Health Risks.A. Use of Amounts Drawn on Trust Account. Notwithstanding any provision of Regulation .15 of this chapter, when a trust agreement is established to meet the requirements of Regulation .14 of this chapter in conjunction with a reinsurance contract covering life, annuities, or accident and health risks, where it is customary to provide a trust agreem
31.05.08.19.htm 31.05.08.19. 19 Permitted Conditions Applicable to Reinsurance Contracts.. A. Trust Agreement. A reinsurance contract may:. 1) Require the assuming insurer to enter into a trust agreement;. 2) Establish a trust account for the benefit of the ceding insurer; and. 3) Specify what the agreement is to cover.. B. Execution of Assignments or Endorsements. To allow the ceding insurer, or the trustee on the direction of the ceding insurer, to negotiate assets whenever necessary without
31.05.08.20.htm 31.05.08.20. 20 Financial Reporting.. A. Reduction of Liability. A ceding insurer may use a trust agreement to reduce any liability for reinsurance ceded to an unauthorized assuming insurer in financial statements required to be filed with the Commissioner in compliance with this chapter when the trust agreement is established on or before the date of filing of the financial statement of the ceding insurer.B. Amount of Reduction. A reduction for the existence of an acceptable trus
31.05.08.21.htm 31.05.08.21. 21 Existing Agreements ― Repealed..
31.05.08.22.htm 31.05.08.22. 22 Other Security.. A ceding insurer may take credit for unencumbered funds that are:. A. Withheld by the ceding insurer in the United States;. B. Subject to withdrawal solely by the ceding insurer; and. C. Under the exclusive control of the ceding insurer..
31.05.08.23.htm 31.05.08.23. 23 Reinsurance Contract.. Credit for reinsurance may not be allowed by the Commissioner as an admitted asset or deduction from liability to any ceding insurer for a reinsurance contract entered into with a reinsurer under this chapter after the adoption of this regulation unless the reinsurance contract includes:A. An insolvency clause, in accordance with Insurance Article, §5-905(a) Annotated Code of Maryland; and
31.05.08.24.htm 31.05.08.24. 24 Credit for Reinsurance ― Certified Reinsurers.. A. The Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that has been certified as a reinsurer in this State at all times for which statutory financial statement credit for reinsurance is claimed under this regulation.B. The credit allowed shall be based upon the security held by or on behalf of the ceding insurer in accordance with a rating assigned to the certifie
31.05.08.25.htm 31.05.08.25. 25 Change in Certification Rating or Suspension or Revocation of Certification.. A. Change in Certification Rating.. 1) In the case of a downgrade of a financial strength rating by a rating agency, or other change in circumstance, the Commissioner shall upon written notice to the certified reinsurer assign a new certification rating to the certified reinsurer in accordance with the requirements of Regulation .24 of this chapter.If the Commissioner downgrades the
31.05.08.26.htm 31.05.08.26. 26 Qualified Jurisdictions.. A. Eligibility.. 1) The Commissioner shall maintain and publish a list of qualified jurisdictions under which an assuming insurer, licensed and domiciled in that jurisdiction, is eligible to be considered for certification by the Commissioner as a certified reinsurer.2) In order to determine whether the domiciliary jurisdiction of a non-U.S. assuming insurer is eligible to be recognized as a qualified jurisdiction, the Commissioner shall:
31.05.08.27.htm 31.05.08.27. 27 Mandatory Funding Clause.. In addition to the requirements of Regulations .14―18 of this chapter, reinsurance contracts entered into or renewed under Regulations .24―26 of this chapter shall include a funding clause, which requires the certified reinsurer to provide and maintain security in an amount sufficient to avoid the imposition of any unfavorable financial statement accounting treatment on the ceding insurer under this chapter for reinsurance ceded to the certified
31.05.08.9999.htm 31.05.08.9999. Administrative History Effective date:. Regulations .01―08 adopted as an emergency provision effective June 17, 1993 (20:14 Md. R. 1164) adopted permanently effective October 11, 1993 (20:20 Md. R. 1571)Regulations .02B and .08F amended, and Regulations .09―17 adopted, as an emergency provision effective December 19, 1997 (25:2 Md. R. 73) adopted permanently effective June 15, 1998 (25:12 Md. R. 947) ―Chapter recodified from COMAR 09.30.97 to COMAR 31.05.08 effective Septembe
<< Back | Return to Main COMAR Search Page