D.C. Mun. Regs. tit. 26, r. 26-A2802

Current through Register 71, No. 45, November 7, 2024

Rule 26-A2802 - CREDIT FOR REINSURANCE - ACCREDITED REINSURERS

2802.1

Pursuant to section 2(a)(2) of the act, D.C. Code section 35-3301(a)(2), the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer which is accredited as a reinsurer in the District of Columbia as of the date of the ceding insurer's statutory financial statement. An accredited reinsurer is one which:

(a) Files a properly executed Form AR-1 set forth in attached Appendix 28-1 to chapter as evidence of its submission to the District of Columbia's jurisdiction and to the District of Columbia's authority to examine its books and records; and

(b) Files with the Commissioner a certified copy of a letter or a certificate of authority or of compliance as evidence that it is licensed to transact insurance or reinsurance in at least one state, or, in the case of a United States branch of an alien assuming insurer, is entered through and licensed to transact insurance or reinsurance in at least one state; and

(c) Files annually with the Commissioner a copy of its annual statement filed with the insurance department of its state of domicile or, in the case of an alien assuming insurer, with the state through which it is entered and in which it is licensed to transact insurance or reinsurance, and a copy of its most recent audited financial statement; and

(d) Maintains a surplus as regards policyholders in an amount not less than $20,000,000 or obtain the affirmative approval of the Commissioner upon a finding that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers.

2802.2

If the Commissioner determines that the assuming insurer has failed to meet or maintain any of these qualifications, he may upon written notice and opportunity for hearing, suspend or revoke the accreditation. Credit shall not be allowed a domestic ceding insurer under this section with respect to reinsurance ceded after March 3, 1993 if the assuming insurer's accreditation has been denied or revoked by the Commissioner after notice and hearing, or if the reinsurance was ceded while the assuming insurer's accreditation was under suspension by the Commissioner.

D.C. Mun. Regs. tit. 26, r. 26-A2802

Final Rulemaking published at 43 DCR 2318 (May 3, 1996); amended by Final Rulemaking published at 68 DCR 6518 (6/25/2021)