Utah Admin. Code 590-173-5

Current through Bulletin 2024-19, October 1, 2024

Section R590-173-5 - Credit for Reinsurance - Accredited Reinsurer in Utah

(1) Credit is allowed for reinsurance ceded by a domestic insurer to an assuming insurer that is accredited as a reinsurer in Utah as of the date the ceding insurer claims reinsurance credit in a statutory financial statement.

(2) An accredited reinsurer shall:

(a) file with the commissioner a completed Form AR-1, available on the department's website, https://insurance.utah.gov, evidencing:

(i) the insurer's submission to Utah's jurisdiction; and

(ii) Utah's authority to examine its books and records;

(b) file with the commissioner a certified copy of a certificate of authority or other acceptable evidence that the accredited reinsurer:

(i) is licensed to transact insurance or reinsurance in at least one state; or

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

(c) file annually with the commissioner a copy of its annual statement filed with:

(i)

(A) the insurance department of its state of domicile; or

(B) in the case of an alien assuming insurer, with the state through which it is entered and is licensed to transact insurance or reinsurance;

(ii) a copy of its most recent audited financial statement; and

(d)

(i) maintain a surplus regarding policyholders in an amount not less than $20 million; or

(ii) obtain the affirmative approval of the commissioner upon a finding that:

(A) the insurer has adequate financial capacity to meet its reinsurance obligations; and

(B) is otherwise qualified to assume reinsurance from a domestic insurer.

(3) If the commissioner determines that an assuming insurer failed to meet or maintain any qualification, the commissioner may suspend or revoke the accreditation upon written notice and opportunity for hearing.

(4) Credit may not be allowed a domestic ceding insurer if:

(a) the assuming insurer's accreditation is revoked by the commissioner; or

(b) the reinsurance was ceded while the assuming insurer's accreditation was suspended by the commissioner.

Utah Admin. Code R590-173-5

Amended by Utah State Bulletin Number 2017-3, effective 1/10/2017

Adopted by Utah State Bulletin Number 2022-12, effective 6/7/2022