D.C. Mun. Regs. tit. 26, r. 26-A2850

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

Rule 26-A2850 - TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING - PURPOSE AND INTENT

2850.1

The purpose and intent of §§2850-2855 is to implement within the District of Columbia uniform, national standards governing reserve financing arrangements pertaining to life insurance policies containing guaranteed nonlevel gross premiums or guaranteed nonlevel 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, as defined in §2899, are held by or on behalf of ceding insurers in the forms and amounts required herein.

2850.2

In general, reinsurance ceded for reserve financing purposes requires that some or all of the assets used to secure the reinsurance treaty or to capitalize the reinsurer:

(a) Are issued by the ceding insurer or its affiliates;

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

(c) Create a reimbursement, indemnification or other similar obligation on the part of the ceding insurer or any if 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).

D.C. Mun. Regs. tit. 26, r. 26-A2850

Final Rulemaking published at 69 DCR 15557 (12/30/2022)