Md. Code Regs. 31.05.08.05

Current through Register Vol. 51, No. 22, November 1, 2024

Section 31.05.08.05 - 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 applicant in the State on a form approved by the Commissioner;

(2) A properly executed NAIC Form AR-1 Certificate of Assuming Insurer as evidence that the applicant agrees to submit to the jurisdiction of the State and to the Commissioner's authority to examine its books and records;

(3) If reinsuring a life insurer, a certificate of valuation issued by the insurance regulatory agency of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer;

(4) An annual statement fee pursuant to Insurance Article, § 2-112(a)(8), Annotated Code of Maryland, and an annual fraud prevention fee pursuant to Insurance Article, § 6-203(a), Annotated Code of Maryland;

(5) A Maryland Insurance Administration Reinsurance Application; and

(6) Upon request of the Commissioner:

(a) A certified copy of its annual statement for the preceding calendar year;

(b) Evidence that the insurer is licensed to transact insurance or reinsurance in at least one state or, in the case of a U.S. branch of an alien insurer, is entered through and licensed to transact insurance or reinsurance in at least one state;

(c) An audited financial report for the preceding calendar year prepared by an independent certified public accountant;

(d) A certificate of deposit issued by the official custodian of deposits of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer;

(e) A copy of the report of the last examination made of the applicant by the insurance regulatory agency of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer; and

(f) Any other document or information that the Commissioner considers necessary to determine eligibility to act as an accredited reinsurer.

C. For continued eligibility as an accredited reinsurer, an applicant shall, by May 30 of each year, file with the Commissioner:

(1) A properly executed NAIC Form AR-1 Certificate of Assuming Insurer as evidence that the applicant agrees to submit to the jurisdiction of the State and to the Commissioner's authority to examine its books and records;

(2) If reinsuring a life insurer, a certificate of valuation issued by the insurance regulatory agency of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer;

(3) An annual statement fee pursuant to Insurance Article, § 2-112(a)(8), Annotated Code of Maryland, and an annual fraud prevention fee pursuant to Insurance Article, § 6-203(a), Annotated Code of Maryland;

(4) A Maryland Insurance Administration Reinsurance Application; and

(5) Upon request of the Commissioner:

(a) A certified copy of its annual statement for the preceding calendar year;

(b) Evidence that the insurer is licensed to transact insurance or reinsurance in at least one state or, in the case of a U.S. branch of an alien insurer, is entered through and licensed to transact insurance or reinsurance in at least one state;

(c) An audited financial report for the preceding calendar year prepared by an independent certified public accountant;

(d) A certificate of deposit issued by the official custodian of deposits of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer;

(e) A copy of the report of the last examination made of the applicant by the insurance regulatory agency of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer; and

(f) Any other document or information that the Commissioner considers necessary to determine continued eligibility to act as an accredited reinsurer.

D. Surplus. An accredited reinsurer shall maintain a surplus as regards policyholders in an amount not less than $20,000,000.

Md. Code Regs. 31.05.08.05

Regulations .05 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 .05 adopted effective June 5, 2006 (33:11 Md. R. 953)