211 CMR, § 59.01

Current through Register 1538, January 3, 2025

Section 59.01 - Purpose and Intent

The purpose of 211 CMR 59.00 is to establish uniform, national standards governing reserve financing arrangements pertaining to life insurance policies containing guaranteed non-level gross premiums, guaranteed non-level benefits and universal life insurance policies with secondary guarantees; and to ensure that, with respect to each such financing arrangement, funds consisting of Primary Security and Other Security are held by or on behalf of ceding insurers in the forms and amounts required herein. In general, reinsurance ceded for reserve financing purposes has one or more of the following characteristics: some or all of the assets used to secure the reinsurance treaty or to capitalize the reinsurer

(1) are issued by the ceding insurer or its affiliates; or

(2) are not unconditionally available to satisfy the general account obligations of the ceding insurer; or

(3) create a reimbursement, indemnification or other similar obligation on the part of the ceding insurer or any of its affiliates (other than a payment obligation under a derivative contract acquired in the normal course and used to support and hedge liabilities pertaining to the actual risks in the policies ceded pursuant to the reinsurance treaty).

211 CMR, § 59.01

Adopted by Mass Register Issue 1486, eff. 1/6/2023.