Section 031-730-5 - Specific qualificationsA. An applicant must not use a business name deceptively similar to that of any insurer or reinsurer currently holding a valid certificate of authority. No application will be entertained that proposes to use a name that has been reserved pursuant to Title 13-C or Title 24-A M.R.S.A., until the period of such reservation has expired or the reserved name has been withdrawn.B. An applicant must have been licensed in its state or country of domicile for a period of time immediately preceding this application adequate to demonstrate to the Superintendent its ability to accept reinsurance for self-insured workers' compensation risks in the State of Maine.C. All applicants must demonstrate a reasonable expectation that their insurance and/or reinsurance business, taken as a whole, will operate at a profit, supported by documentation including, but not limited to, historical earnings records for the last 3 years and projections of operating results for the coming 5 years.D. Where trusteed assets are required hereunder, the trust fund shall be governed by the following provisions:(1) Trusteed assets must qualify as admitted assets under, and be valued in accordance with, insurance accounting precepts. In addition, trusteed assets must be tangible in nature and readily convertible to cash in secondary markets.(2) Trust deposits must be maintained in a qualified United States financial institution. For purposes of this regulation, a qualified United States financial institution means an institution that: (a) Is organized, or in the case of a United States branch or agency office of a foreign banking organization is licensed, under the laws of the United States or any state of the United States, and has been granted authority to operate with fiduciary powers; and(b) Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.(3) Each year on or before March 1, the applicant shall cause the trustee bank or banks to report to the Superintendent in writing, setting forth the balance of the trust, listing the trust's investments at the end of the preceding year and certifying the date of any planned termination of the trust.(4) The trust must be established in a form approved by the Superintendent. The trust instrument must provide that contested claims are valid and enforceable upon the final order of any court of competent jurisdiction in the United States. The trust must vest legal title to its assets in the trustees of the trust for the benefit of the applicant's United States policyholders and ceding insurers and self-insurers, their assigns and successors in interest. The trust and the applicant are subject to examination as determined by the Superintendent. The trust must remain in effect for as long as the applicant has outstanding obligations due under the reinsurance agreements subject to the trust, or until a qualified successor is appointed.E. All applicants shall comply with all reserve requirements contained in Title 24-A M.R.S.A. Chapter 11 Subchapter V and all investment requirements contained in Title 24-A M.R.S.A. Chapter 13, or with comparable laws of the applicant's state or country of domicile. A foreign or alien insurer must demonstrate to the satisfaction of the Superintendent that its investments are of a quality substantially equal to that required under Chapter 13 for similar funds of like domestic insurers, and must make available to the Superintendent an actuarial opinion substantially in compliance with 24-A M.R.S.A. §993.F. Alien insurers must also comply with the following requirements. These provisions are not intended to conflict with or override any contractual obligation of the parties to a reinsurance agreement to arbitrate their disputes. (1) The applicant agrees that in the event of any dispute arising out of the reinsurance agreement, at the request of the ceding self-insurer, it shall: (a) Submit to the jurisdiction of any court of competent jurisdiction in this State;(b) Comply with all requirements necessary to give the court jurisdiction; and(c) Abide by the final decision of the court or of any appellate court in the event of an appeal.(2) The applicant agrees to designate the Superintendent and any successor in office as its agent to receive service of legal process issued against the applicant in any action, suit, or proceeding instituted by or on behalf of the ceding self-insurer, or in any action, suit, or proceeding against the applicant arising out of any contract or transaction assumed under the reinsurance agreement. The procedures set forth in Title 24-A M.R.S.A. §§421 and 422 shall be followed where applicable.(3) The applicant shall provide a copy of a current report of its examination certified by the public insurance supervisory official of the applicant's country of domicile, according to the requirements of Section 7 below.02-031 C.M.R. ch. 730, § 5