02-031-740 Me. Code R. § 4

Current through 2024-52, December 25, 2024

Section 031-740-4 - Definitions

As used in this rule the following terms have the following meanings:

A. "Jurisdiction" means any state, district, or territory of the United States, any lawful national government, and any supranational body or subdivision or dependency of a national government that is internationally recognized as exercising regulatory authority over the business of insurance.

B. "Substantially similar" standard means credit for reinsurance standards which the Superintendent determines equal or exceed the standards of Title 24-A M.R.S.A. §731-B and this rule in all material respects.

C. "Beneficiary" means the entity for whose benefit a trust has been established and includes any successor by operation of law of the beneficiary, including without limitation any liquidator, rehabilitator, receiver, or conservator.

D. "Grantor" means the entity that has established a trust for the benefit of the beneficiary. For a trust established pursuant to a reinsurance agreement, the grantor is generally the assuming insurer.

E. "Obligations" under a reinsurance agreement means:

(1) For business ceded by property and casualty insurers:

(a) Reinsured losses, allocated loss expenses, and unallocated loss expenses if a part of the reinsurance agreement, paid by the ceding company but yet to be recovered from the assuming insurer;

(b) Reserves for reinsured losses reported and outstanding;

(c) Reserves for reinsured losses incurred but not reported;

(d) Reserves for allocated reinsured loss expenses, and, if unallocated loss expenses are covered by the agreement, reserves for unallocated reinsured loss expenses; and

(e) Reserves for unearned premiums.

(2) For business ceded by life and health insurers:

(a) Aggregate reserves for life policies and contracts net of policy loans and net due and deferred premiums;

(b) Aggregate reserves for accident and health policies;

(c) Deposit funds and other liabilities without life or disability contingencies; and

(d) Liabilities for policy and contract claims.

(3) Obligations shall be determined on a gross basis without regard to retrocessions.

F. "Licensed" means licensed under Title 24-A M.R.S.A. §410, under some other law of this State or another state that entails an obligation to maintain risk-based capital in compliance with standards established by the National Association of Insurance Commissioners (NAIC) and to file statutory financial statements in compliance with the NAIC Accounting Practices and Procedures Manual, or under foreign licensing requirements that the Superintendent determines to be the analogous standards in that jurisdiction for commercial insurers or professional reinsurers.

02-031 C.M.R. ch. 740, § 4