Ala. Admin. Code r. 482-1-156-.06

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-156-.06 - Credit For Reinsurance - Reinsurer Domiciled And Licensed In Another State

(1) Pursuant to Section 27-5B-6, the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer which complies with all of the following as of any date on which statutory financial statement credit for reinsurance is claimed:

(a) Is domiciled and licensed in (or, in the case of a United States branch of an alien assuming insurer, is entered through and licensed in) a state which employs standards regarding credit for reinsurance substantially similar to those applicable under the Act and this chapter.

(b) Maintains a surplus as regards policyholders in an amount not less than $20,000,000.

(c) Files a properly executed Form AR-1 with the Commissioner as evidence of its submission to this state's authority to examine its books and records.

(2) The provisions of this rule relating to surplus as regards policyholders shall not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system. As used in this rule, "substantially similar" standards means credit for reinsurance standards which the Commissioner determines equal or exceed the standards of the Act and this chapter.

Ala. Admin. Code r. 482-1-156-.06

New Rule: October 9, 2013; effective January 1, 2014. Filed with LRS October 9, 2013. Rule is not subject to the Alabama Administrative Procedure Act.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-5B-1, et seq. (2013)