D.C. Mun. Regs. tit. 26, r. 26-A2854
The requirements of §2853 must be satisfied as of the date that risks under Covered Policies are ceded (if such date is on or after the effective date of this regulation) and on an ongoing basis thereafter. Under no circumstances shall a ceding insurer take or consent to any action or series of actions that would result in a deficiency under §2853.1(c) or (d) with respect to any reinsurance treaty under which Covered Policies have been ceded, and in the event that a ceding insurer becomes aware at any time that such a deficiency exists, it shall use its best efforts to arrange for the deficiency to be eliminated as expeditiously as possible.
Prior to the due date of each Quarterly or Annual Statement, each life insurance company that has ceded reinsurance within the scope of §2851 shall perform an analysis, on a treaty-by-treaty basis, to determine, as to each reinsurance treaty under which Covered Policies have been ceded, whether as of the end of the immediately preceding calendar quarter (the valuation date) the requirements of §2853.1(c) and (d) were satisfied. The ceding insurer shall establish a liability equal to the excess of the credit for reinsurance taken over the amount of Primary Security actually held pursuant to §2853.1(c), unless:
Nothing in §2854.2 shall be construed to allow a ceding company to maintain any deficiency under §2853.1(c) or (d) for any period of time longer than is reasonably necessary to eliminate the deficiency.
D.C. Mun. Regs. tit. 26, r. 26-A2854