reglab/statecodes huggingface dataset:
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 3: REINSURANCE › 24-A §733. Examination of reinsurance agreements

§733. Examination of reinsurance agreements
The superintendent may examine the reinsurance agreements or deposit arrangements of a ceding insurer at any time.   [PL 1991, c. 828, §19 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §19 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 3: REINSURANCE › 24-A §734. Minimum surplus regarding policyholders to assume property and casualty reinsurance

§734. Minimum surplus regarding policyholders to assume property and casualty reinsurance
1.  Prohibition.
Notwithstanding section 731‑B, subsection 1, paragraph B, a domestic property or domestic casualty insurer, other than mutual assessment insurers operating pursuant to chapter 51, possessing less than $10,000,000 in surplus regarding policyholders may not, without the prior written approval of the superintendent, assume reinsurance on any risk that it is otherwise permitted to assume except when the reinsurance is:
A. Required by applicable law or rule; or   [PL 1991, c. 828, §19 (NEW).]
B. Assumed pursuant to pooling arrangements among members of the same holding company system.   [PL 1991, c. 828, §19 (NEW).]
[PL 1991, c. 828, §19 (NEW).]
2.  Application.
This section applies to contracts of reinsurance entered into or renewed after the effective date of this section.
[PL 1991, c. 828, §19 (NEW).]
3.  Effect.
The performance of an activity prohibited by this section does not invalidate any reinsurance contract between the parties to the contract.
[PL 1991, c. 828, §19 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §19 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §744. Required contract provisions; reinsurance intermediary-broker

§744. Required contract provisions; reinsurance intermediary-broker
Transactions between a reinsurance intermediary-broker and the insurer it represents in such a capacity may be entered into only pursuant to a written authorization specifying the responsibilities of each party. The authorization must, at a minimum, provide that:   [PL 1991, c. 828, §20 (NEW).]
1.  Termination.
The insurer may terminate the reinsurance intermediary-broker's authority at any time upon 5 days' written notice to the reinsurance intermediary-broker;
[PL 1991, c. 828, §20 (NEW).]
2.  Accounting.
The reinsurance intermediary-broker shall render timely accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by or owed, to the reinsurance intermediary-broker and remit all funds due to the insurer within 30 days of receipt;
[PL 1991, c. 828, §20 (NEW).]
3.  Bank as fiduciary.
All funds collected for the insurer's account must be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank that is a qualified United States financial institution;
[PL 1991, c. 828, §20 (NEW).]
4.  Compliance with law.
The reinsurance intermediary-broker shall comply with section 745;
[PL 1991, c. 828, §20 (NEW).]
5.  Compliance with standards.
The reinsurance intermediary-broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks; and
[PL 1991, c. 828, §20 (NEW).]
6.  Disclosure.
The reinsurance intermediary-broker shall disclose to the insurer any relationship with any reinsurer or insurer to which business will be ceded or retroceded.
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §745. Books and records; reinsurance intermediary-brokers

§745. Books and records; reinsurance intermediary-brokers
1.  Records required.
For at least 10 years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the reinsurance intermediary-broker shall keep a complete record for each transaction showing:
A. The type of contract, limits, underwriting restrictions, classes of risks and territory;   [PL 1991, c. 828, §20 (NEW).]
B. Period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation;   [PL 1991, c. 828, §20 (NEW).]
C. Reporting and settlement requirements of balances;   [PL 1991, c. 828, §20 (NEW).]
D. Rate used to compute the reinsurance premium;   [PL 1991, c. 828, §20 (NEW).]
E. Names and addresses of assuming reinsurers;   [PL 1991, c. 828, §20 (NEW).]
F. Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-broker;   [PL 1991, c. 828, §20 (NEW).]
G. Related correspondence and memoranda;   [PL 1991, c. 828, §20 (NEW).]
H. Proof of placement;   [PL 1991, c. 828, §20 (NEW).]
I. Details regarding retrocessions handled by the reinsurance intermediary-broker, including the identity of retrocessionaires and percentage of each contract assumed or ceded;   [PL 1991, c. 828, §20 (NEW).]
J. Financial records, including, but not limited to, premium and loss accounts; and   [PL 1991, c. 828, §20 (NEW).]
K. When the reinsurance intermediary-broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(2) Placed through a representative of the assuming reinsurer that is not an employee, written evidence that the reinsurer has delegated binding authority to the representative.   [PL 1991, c. 828, §20 (NEW).]
[PL 1991, c. 828, §20 (NEW).]
2.  Access.
The insurer must have access and may copy and audit all accounts and records maintained by the reinsurance intermediary-broker related to its business in a form usable by the insurer.
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §746. Duties of insurers utilizing the services of a reinsurance intermediary-broker

§746. Duties of insurers utilizing the services of a reinsurance intermediary-broker
1.  License requirements.
An insurer may not engage the services of any person to act as a reinsurance intermediary-broker on the insurer's behalf unless that person is licensed as required by this subchapter.
[PL 1991, c. 828, §20 (NEW).]
2.  Status of intermediary-broker.
An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which the insurer transacts business, unless such reinsurance intermediary-broker is under common control with the insurer and subject to section 222.
[PL 1991, c. 828, §20 (NEW).]
3.  Financial statements.
The insurer shall annually obtain a copy of statements of current origin of the financial condition of each reinsurance intermediary-broker with which the insurer transacts business. These statements must be certified reports or reviews performed by a certified public accountant.
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §748. Books, records and powers; reinsurance intermediary-managers

§748. Books, records and powers; reinsurance intermediary-managers
1.  Records required.
For at least 10 years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-manager, the reinsurance intermediary-manager shall keep a complete record for each transaction showing:
A. The type of contract, limits, underwriting restrictions, classes of risks and territory;   [PL 1991, c. 828, §20 (NEW).]
B. Period of coverage, including effective and expiration dates, cancellation provisions and notice required for cancellation, and status of disposition of outstanding reserves on covered risks;   [PL 1991, c. 828, §20 (NEW).]
C. Reporting and settlement requirements of balances;   [PL 1991, c. 828, §20 (NEW).]
D. Rate used to compute the reinsurance premium;   [PL 1991, c. 828, §20 (NEW).]
E. Names and addresses of reinsurers;   [PL 1991, c. 828, §20 (NEW).]
F. Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary-manager;   [PL 1991, c. 828, §20 (NEW).]
G. Related correspondence and memoranda;   [PL 1991, c. 828, §20 (NEW).]
H. Proof of placement;   [PL 1991, c. 828, §20 (NEW).]
I. Details regarding retrocessions handled by the reinsurance intermediary-manager including the identity of retrocessionaires and the percentage of each contract assumed or ceded;   [PL 1991, c. 828, §20 (NEW).]
J. Financial records, including but not limited to, premium and loss accounts; and   [PL 1991, c. 828, §20 (NEW).]
K. When the reinsurance intermediary-manager places a reinsurance contract on behalf of a ceding insurer:
(1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(2) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.   [PL 1991, c. 828, §20 (NEW).]
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §749. Prohibited acts

§749. Prohibited acts
The reinsurance intermediary-manager may not:   [PL 1991, c. 828, §20 (NEW).]
1.  Retrocession.
Retrocede business on behalf of the reinsurer; except that, the reinsurance intermediary-manager may facultatively retrocede business pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for any such retrocession. The guidelines must include a list of reinsurers with which automatic agreements are in effect, commission schedules and for each reinsurer, the coverages and amounts or percentages that may be reinsured;
[PL 1991, c. 828, §20 (NEW).]
2.  Use of syndicates.
Commit the reinsurer to participate in reinsurance syndicates;
[PL 1991, c. 828, §20 (NEW).]
3.  Use of other licensees.
Make use of any agent or broker without ensuring that the agent or broker is lawfully licensed to transact the kind of reinsurance for which the agent or broker is being used;
[PL 1991, c. 828, §20 (NEW).]
4.  Claim payment.
Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder surplus as of December 31st of the next preceding calendar year;
[PL 1991, c. 828, §20 (NEW).]
5.  Claim recovery.
Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer;
[PL 1991, c. 828, §20 (NEW).]
6.  Joint employment.
Jointly employ an individual who is employed by the reinsurer unless the reinsurance intermediary-manager is under common control with the reinsurer subject to section 222; or
[PL 1991, c. 828, §20 (NEW).]
7.  Subcontract.
Assign duties under a contract to a subcontracting manager.
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §750. Duties of reinsurers utilizing the services of a reinsurance intermediary-manager

§750. Duties of reinsurers utilizing the services of a reinsurance intermediary-manager
1.  License required.
A reinsurer may not engage the services of any person to act as a reinsurance intermediary-manager on its behalf unless that person is licensed as required by this subchapter.
[PL 1991, c. 828, §20 (NEW).]
2.  Financial statements.
The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager that the reinsurer has engaged prepared by an independent certified public accountant in a form acceptable to the superintendent.
[PL 1991, c. 828, §20 (NEW).]
3.  Actuarial review.
If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary who specializes in the type of insurance under consideration attesting to the adequacy of loss reserves including losses incurred and outstanding on business produced by the reinsurance intermediary-manager. This opinion is in addition to any other required loss reserve certification.
[PL 1991, c. 828, §20 (NEW).]
4.  Binding authority.
Binding authority for all retrocessional contracts or participation in reinsurance syndicates rests with an officer of the reinsurer who may not be affiliated with the reinsurance intermediary-manager.
[PL 1991, c. 828, §20 (NEW).]
5.  Notice of termination.
Within 30 days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of termination to the superintendent.
[PL 1991, c. 828, §20 (NEW).]
6.  Board member qualifications.
A reinsurer may not appoint to its board of directors, any officer, director, employee, controlling shareholder or subproducer of its reinsurance intermediary-manager. This subsection does not apply to relationships governed by section 222 or chapter 77.
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §751. Examination authority

§751. Examination authority
1.  Authority.
A reinsurance intermediary is subject to examination by the superintendent. The superintendent must have access to all books, bank accounts and records of the reinsurance intermediary in a usable form.
[PL 1991, c. 828, §20 (NEW).]
2.  Status.
A reinsurance intermediary-manager may be examined as if it were the reinsurer.
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §752. Penalties and liabilities

§752. Penalties and liabilities
1.  Violation.
A reinsurance intermediary, insurer or reinsurer found by the superintendent, after a hearing conducted in accordance with the Maine Administrative Procedure Act, to be in violation of any provision of this Title, is subject to the following.
A. For each separate violation, a violator must pay a penalty of not less than $5,000 and not more than $100,000 for each separate violation.   [PL 1991, c. 828, §20 (NEW).]
B. A violator is subject to revocation or suspension of its license.   [PL 1991, c. 828, §20 (NEW).]
C. If a violation was committed by the reinsurance intermediary, the reinsurance intermediary shall make restitution to the insurer, reinsurer, rehabilitator or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to such violation.   [PL 1991, c. 828, §20 (NEW).]
[PL 1991, c. 828, §20 (NEW).]
2.  Final agency action.
The decision, determination or order of the superintendent pursuant to this section is a final agency action and may be appealed pursuant to section 236.
[PL 1991, c. 828, §20 (NEW).]
3.  Nonexclusivity of penalties.
Nothing contained in this section affects the right of the superintendent to impose any other penalties provided in this Title.
[PL 1991, c. 828, §20 (NEW).]
4.  Rights of others.
Nothing contained in this subchapter limits or restricts the rights of policyholders, claimants, creditors or other 3rd parties or confers any rights to those persons.
[PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §753. Rules

§753. Rules
The superintendent may adopt reasonable rules for the implementation and administration of the provisions of this subchapter.   [PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 4: REINSURANCE INTERMEDIARIES › 24-A §754. Effective date

§754. Effective date
This subchapter takes effect January 1, 1993. An insurer or reinsurer may not continue to utilize the services of a reinsurance intermediary on and after February 1, 1993 unless utilization is in compliance with this subchapter.   [PL 1991, c. 828, §20 (NEW).]
SECTION HISTORY
PL 1991, c. 828, §20 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 5: ASSUMPTION REINSURANCE › 24-A §761. Definitions

§761. Definitions
As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.   [PL 1993, c. 603 (NEW).]
1.  Assuming insurer.
"Assuming insurer" means the insurer that acquires an insurance obligation or risk from the transferring insurer pursuant to an assumption reinsurance agreement.
[PL 1993, c. 603 (NEW).]
2.  Assumption reinsurance agreement.
"Assumption reinsurance agreement" means a contract that both:
A. Transfers insurance obligations or risks of existing or in-force contracts of insurance from a transferring insurer to an assuming insurer; and   [PL 1993, c. 603 (NEW).]
B. Is intended to effect a novation of the transferred contract of insurance with the result that the assuming insurer becomes directly liable to the policyholders of the transferring insurer and the transferring insurer's insurance obligations or risks under the contracts are extinguished.   [PL 1993, c. 603 (NEW).]
[PL 1993, c. 603 (NEW).]
3.  Contract of insurance.
"Contract of insurance" means a written agreement between an insurer and policyholder pursuant to which the insurer, in exchange for premium or other consideration, agrees to assume an obligation or risk of the policyholder or to make payments on behalf of, or to, the policyholder or its beneficiaries. Contract of insurance may include property, casualty, life, health, accident, surety, title and annuity business authorized to be written pursuant to the insurance laws of this State.
[PL 1993, c. 603 (NEW).]
4.  Home service business.
"Home service business" means insurance business on which premiums are collected on a weekly or monthly basis by an agent of the insurer.
[PL 1993, c. 603 (NEW).]
5.  Notice of transfer.
"Notice of transfer" means the written notice to policyholders required by section 764, subsection 1.
[PL 1993, c. 603 (NEW).]
6.  Policyholder.
"Policyholder" means an individual or entity that has the right to terminate or otherwise alter the terms of a contract of insurance. It includes a certificateholder whose certificate is in force on the proposed effective date of the assumption, if the certificateholder has the right to keep the certificate in force without change in benefit following termination of the group policy.
The right to keep the certificate in force referred to in this section does not include the right to elect individual coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, COBRA, of the Employee Retirement Income Security Act of 1974, as amended, 29 United States Code, Section 1161 to 1168.
[PL 1993, c. 603 (NEW).]
7.  Transferring insurer.
"Transferring insurer" means the insurer that transfers an insurance obligation risk to an assuming insurer pursuant to an assumption reinsurance agreement.
[PL 1993, c. 603 (NEW).]
SECTION HISTORY
PL 1993, c. 603 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 5: ASSUMPTION REINSURANCE › 24-A §762. Scope

§762. Scope
1.  Application.
This subchapter applies to an insurer authorized in this State that either assumes or transfers the obligations or risks on contracts of insurance pursuant to an assumption reinsurance agreement.
[PL 1993, c. 603 (NEW).]
2.  Exceptions.
This subchapter does not apply to the following:
A. A reinsurance agreement or transaction in which the ceding insurer continues to remain directly liable for its insurance obligations or risks under the contracts of insurance subject to the reinsurance agreement;   [PL 1993, c. 603 (NEW).]
B. The substitution of one insurer for another upon the expiration of insurance coverage pursuant to statutory or contractual requirements and the issuance of a new contract of insurance by another insurer;   [PL 1993, c. 603 (NEW).]
C. The transfer of contracts of insurance pursuant to mergers or consolidations of 2 or more insurers to the extent that those transactions are regulated by law;   [PL 1993, c. 603 (NEW).]
D. An insurer subject to a judicial order of liquidation or rehabilitation;   [PL 1993, c. 603 (NEW).]
E. A reinsurance agreement or transaction to which a state insurance guaranty association is a party, except that policyholders do not lose any rights or claims afforded under their original policies pursuant to chapter 57, subchapter III and chapter 62; or   [PL 1993, c. 603 (NEW).]
F. The transfer of liabilities from one insurer to another under a single group policy upon the request of the group policyholder, unless the certificateholder pays all or substantially all of the premium.   [PL 1993, c. 603 (NEW).]
[PL 1993, c. 603 (NEW).]
SECTION HISTORY
PL 1993, c. 603 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 5: ASSUMPTION REINSURANCE › 24-A §764. Rights of policyholder

§764. Rights of policyholder
1.  Right to reject.
Every policyholder has the right to reject the transfer and novation of the contracts of insurance. A policyholder electing to reject the assumption transaction shall return to the transferring insurer the preaddressed, postage-paid response card or other written notice and indicate on the response card that the assumption is rejected.
[PL 1993, c. 603 (NEW).]
2.  Payment of premium.
Payment of the next premium to the assuming company after notice is received is determined to indicate the policyholder's acceptance of the transfer to the assuming insurer and a novation is determined to have been effected if the premium notice clearly states that payment of the premium to the assuming insurer constitutes acceptance of the transfer. The premium notice must also provide a method for the policyholder to pay the premium while reserving the right to reject the transfer. With respect to a home service business or any other business not using premium notices, the disclosures and procedural requirements of this subsection are to be set forth in the notice of transfer required by section 763, subsection 1, paragraph A and in the assumption certificate.
[PL 1995, c. 329, §6 (AMD).]
3.  Additional notice.
No fewer than 24 months after the mailing of the initial notice of transfer required under section 763, if positive consent to the transfer and assumption has not been received or consent has not been determined to have occurred under subsection 1, the transferring company shall send to the policyholder a 2nd and final notice of transfer as specified in section 763, subsection 1. If the policyholder does not reject the transfer during the one-month period immediately following the date on which the transferring insurer mailed the 2nd and final notice of transfer, the policyholder's consent is determined to have occurred and novation of the contract is effected. With respect to the home service business, the 24 and one-month periods must be measured from the date of delivery of the notice of transfer pursuant to section 763, subsection 1, paragraph A.
[PL 1993, c. 603 (NEW).]
4.  Response cards.
The transferring insurer is deemed to have received the response card on the date it is postmarked. A policyholder may also send a response card by facsimile or other electronic transmission or by registered mail, express delivery or courier service, in which case the response card is determined to have been received by the assuming insurer on the date of actual receipt by the transferring insurer.
[PL 1993, c. 603 (NEW).]
SECTION HISTORY
PL 1993, c. 603 (NEW). PL 1995, c. 329, §6 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 5: ASSUMPTION REINSURANCE › 24-A §765. Effect of consent by the policyholder

§765. Effect of consent by the policyholder
If a policyholder consents to the transfer pursuant to section 764 or if the transfer is effected under section 766, there is a novation of the contract of insurance subject to the assumption reinsurance agreement with the result that the transferring insurer is relieved of all insurance obligations or risks transferred under the assumption reinsurance agreement and the assuming insurer is directly and solely liable to the policyholder for those insurance obligations or risks.   [PL 1993, c. 603 (NEW).]
SECTION HISTORY
PL 1993, c. 603 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 5: ASSUMPTION REINSURANCE › 24-A §766. Authority of the insurance regulatory official

§766. Authority of the insurance regulatory official
1.  Transfer in the best interest of the policyholders.
If an insurer domiciled in this State or in a jurisdiction having a substantially similar law is determined by the domiciliary insurance regulatory official to be in hazardous financial condition or an administrative proceeding has been instituted against it for the purpose of reorganizing or conserving the insurer, and the transfer of the contracts of insurance is in the best interest of the policyholders, as determined by the domiciliary insurance regulatory official, a transfer and novation may be effected notwithstanding the provisions of this subchapter. This may include a form of implied consent and adequate notification to the policyholder of the circumstances requiring the transfer as approved by the insurance regulatory official.
[PL 1993, c. 603 (NEW).]
2.  Protection.
Notwithstanding any other provision of law, in the event that a transfer and novation is effected by a decision of a domiciliary insurance regulatory official under this section, the residents of this State whose policies are transferred to an unlicensed insurer are entitled to full protection under chapter 57, subchapter III and chapter 62.
[PL 1993, c. 603 (NEW).]
SECTION HISTORY
PL 1993, c. 603 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §783. Limited purpose of special purpose reinsurance vehicle

§783. Limited purpose of special purpose reinsurance vehicle
Special purpose reinsurance vehicles authorized under this subchapter are created for the limited purpose of entering into insurance securitization transactions with investors and related agreements to pay one or more ceding insurers agreed-upon amounts under a special purpose reinsurance vehicle contract upon the occurrence of triggering events related to the insurance business of the ceding insurer. A special purpose reinsurance vehicle may not issue a contract for assumption of risk or indemnification of loss other than a special purpose reinsurance vehicle contract.   [PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §785. Powers

§785. Powers
1.  Powers.
A special purpose reinsurance vehicle authorized under this subchapter has the powers to enter into contracts and to conduct other commercial activities necessary to fulfill the purposes of this subchapter. These activities may include, but are not limited to, entering into contracts, issuing securities of the special purpose reinsurance vehicle and complying with the terms of the contracts, entering into trust agreements, swap agreements and any other agreements necessary to effectuate an insurance securitization in compliance with the limitations and pursuant to the authorities granted to the reinsurance vehicle under this subchapter or the plan of operation approved by the superintendent.
[PL 2003, c. 249, §2 (NEW).]
2.  Bylaws.
A special purpose reinsurance vehicle organized or doing business under this subchapter is capable of suing or being sued and may make or enforce contracts in relation to the business of the reinsurance vehicle; may have and use a common seal and in the name of the reinsurance vehicle or by a trustee chosen by the board of directors is capable of taking, purchasing, holding and disposing of real and personal property for carrying into effect the purposes of its organization; and may by its board of directors, trustees, officers or managers make bylaws and amendments to the bylaws not inconsistent with the laws or the constitution of this State or of the United States. The bylaws must define the manner of electing directors, trustees or managers and officers of the reinsurance vehicle, together with their qualifications, duties and term of office.
[PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §786. Affiliation

§786. Affiliation
Notwithstanding the provisions of section 222, the special purpose reinsurance vehicle, the special purpose reinsurance vehicle organizer or subsequent debt or equity investors in special purpose reinsurance vehicle securities are not deemed affiliates of the ceding insurer by virtue of the special purpose reinsurance vehicle contract between the ceding insurer and the reinsurance vehicle, the securities of the reinsurance vehicle or related agreements necessary to implement the special purpose reinsurance vehicle insurance securitization.   [PL 2007, c. 386, §15 (AMD).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW). PL 2007, c. 386, §15 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §787. Capitalization

§787. Capitalization
A special purpose reinsurance vehicle must have minimum initial capital of not less than $5,000. All of the initial capital must be received by the reinsurance vehicle in cash. The minimum initial capital required and all other funds of the reinsurance vehicle in excess of its minimum initial capital, including funds held in trust to secure the obligations of the reinsurance vehicle pursuant to its special purpose reinsurance vehicle contracts, must be invested as provided in section 795.   [PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §788. Dividends

§788. Dividends
The special purpose reinsurance vehicle may not declare or pay dividends in any form to its owners unless the dividends do not cause the reinsurance vehicle or any of its protected cells to become impaired and, after giving effect to the dividends, the assets of the reinsurance vehicle, including assets held in trust pursuant to the terms of the insurance securitization, must be sufficient to meet its obligations. Except for dividends specifically provided for in the approved plan of operation under section 782, subsection 2, paragraph H, the prior approval of the superintendent is required for any dividend paid during the term of coverage or while the reinsurance vehicle has undischarged obligations to the ceding insurer. The dividends may be declared by the board of directors of the reinsurance vehicle if the dividends would not violate the provisions of this subchapter or the approved plan of operation and would not jeopardize the fulfillment of the obligations of the reinsurance vehicle or the trustee pursuant to the special purpose reinsurance vehicle insurance securitization, the special purpose reinsurance vehicle contract or any related transaction. The provisions of section 222, subsection 11‑C do not apply to such dividends.   [PL 2009, c. 511, Pt. A, §6 (AMD).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW). PL 2007, c. 386, §16 (AMD). PL 2009, c. 511, Pt. A, §6 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §789. Records and financial reports

§789. Records and financial reports
1.  Records.
The records of the special purpose reinsurance vehicle must be maintained in this State and must be available for examination by the superintendent at any time. No later than 5 months after the end of the fiscal year of the reinsurance vehicle, the reinsurance vehicle shall file with the superintendent an audit by a certified public accounting firm of the financial statements of the reinsurance vehicle and the trust accounts referred to in section 784, subsection 2, paragraph E.
[PL 2003, c. 249, §2 (NEW).]
2.  Statement of operation.
Each special purpose reinsurance vehicle organized under this subchapter shall file with the superintendent no later than March 1st of each year a statement of operations, including a statement of income, a balance sheet and a detailed listing of invested assets, including identification of assets held in trust to secure the reinsurance vehicle's obligations under the special purpose reinsurance vehicle contract, for the year ending the prior December 31st. The statements must be prepared in accordance with statutory accounting principles consistent with section 901‑A on forms required by the superintendent. If one or more protected cells have been established, the statement must detail the financial experience of the general account and each protected cell separately, in addition to providing the combined financial experience of the special purpose reinsurance vehicle and all protected cells.
[PL 2007, c. 386, §17 (AMD).]
3.  Financial statement.
The special purpose reinsurance vehicle shall keep its books and records in such manner that its financial condition, affairs and operations can be ascertained and so that its financial statements filed with the superintendent can be readily verified and its compliance with the provisions of this subchapter determined. The books and records may be photographed, reproduced on film or stored and reproduced electronically.
[PL 2003, c. 249, §2 (NEW).]
4.  Preservation.
All books, records, documents, accounts and vouchers must be preserved and kept available in this State for the purpose of examination and until authority to destroy or otherwise dispose of the records is secured from the superintendent. The original records may, however, be kept and maintained outside this State if, according to a plan adopted by the special purpose reinsurance vehicle's board of directors and approved by the superintendent, it maintains suitable records in lieu of the original records.
[PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW). PL 2007, c. 386, §17 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §790. Officers and directors

§790. Officers and directors
The directors of a special purpose reinsurance vehicle shall elect officers that they consider necessary to carry out the purposes of the reinsurance vehicle pursuant to this subchapter. The provisions of Title 13‑C, section 857 apply to the indemnification of officers and directors of reinsurance vehicles organized under this subchapter.   [PL 2003, c. 249, §2 (NEW).]
1.  Appointment; election of officers; directors.
Each special purpose reinsurance vehicle authorized to do business in this State shall notify the superintendent within 30 days after the appointment or election of any new officers or directors.
[PL 2003, c. 249, §2 (NEW).]
2.  Removal of officer; director.
When the superintendent determines that an officer or director does not meet the standards set forth in this section, the superintendent shall, after notice and opportunity for hearing afforded to the officer or director, and after a finding that the officer or director is incompetent or untrustworthy or of known bad character, order the removal of the person. If the reinsurance vehicle does not comply with a removal order within 30 days, the superintendent may suspend that reinsurance vehicle's limited certificate of authority until such time as the order is complied with.
[PL 2003, c. 249, §2 (NEW).]
3.  Loans with affiliate.
The reinsurance vehicle may make no loans to any special purpose reinsurance vehicle organizer, owner, director, officer, manager or affiliate of the reinsurance vehicle.
[PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §791. Fees and taxes

§791. Fees and taxes
A special purpose reinsurance vehicle application under section 782, subsection 2 is subject to the application fee specified in section 601, subsection 1. A reinsurance vehicle is also responsible for expenses and costs incurred by the bureau in accordance with section 228. The reinsurance vehicle is not subject to state premium or other taxes incidental to the operation of its business as long as the business remains within the limitations of this subchapter.   [PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §792. Dissolution

§792. Dissolution
A special purpose reinsurance vehicle operating under this subchapter may be dissolved at any time by a vote of its directors under section 790 and after the action has been approved by the superintendent. Voluntary dissolution may not be effected or allowed until and unless all of the obligations of the reinsurance vehicle pursuant to the insurance securitization or securitizations have been fully and finally satisfied pursuant to their terms. In the case of voluntary dissolution, the disposition of the affairs of the reinsurance vehicle, including the settlement of all outstanding obligations, must be made by the officers or directors of the reinsurance vehicle and when the liquidation has been completed and a final statement in acceptable form has been filed with and approved by the superintendent the provisions for voluntary dissolution under section 3484 must be followed to dissolve the reinsurance vehicle.   [PL 2007, c. 386, §18 (AMD).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW). PL 2007, c. 386, §18 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §794. Not subject to guaranty funds; residual market or similar arrangements

§794. Not subject to guaranty funds; residual market or similar arrangements
1.  Guaranty funds.
The special purpose reinsurance vehicle or the activities, assets and obligations relating to the reinsurance vehicle are not subject to the provisions of chapter 57, subchapter 3 or chapter 62 and a reinsurance vehicle may not be assessed by or otherwise be required to contribute to any guaranty fund or guaranty association in this State with respect to the activities, assets or obligations of a reinsurance vehicle or the ceding insurer.
[PL 2003, c. 249, §2 (NEW).]
2.  Residual market.
The special purpose reinsurance vehicle may not be required to participate in any residual market, so-called "FAIR" plan or other similar plan to provide insurance coverage, take out policies, assume risks, make capital contributions, pay or be otherwise obligated for assessments, surcharges or fees or otherwise support or participate in such plans or arrangements.
[PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §795. Asset and investment limitations

§795. Asset and investment limitations
1.  Assets.
Assets of the special purpose reinsurance vehicle held in trust to secure obligations under the special purpose reinsurance vehicle contract must at all times be held in:
A. Cash and cash equivalents;   [PL 2003, c. 249, §2 (NEW).]
B. Securities listed by the Securities Valuation Office of the National Association of Commissioners or its successor organization and qualifying as admitted assets under statutory accounting principles pursuant to section 901‑A; or   [PL 2003, c. 249, §2 (NEW).]
C. Any other form of security acceptable to the superintendent.   [PL 2003, c. 249, §2 (NEW).]
[PL 2003, c. 249, §2 (NEW).]
2.  Investment practices.
In addition, the special purpose reinsurance vehicle may enter into swap agreements or other transactions that have the objective of leveling timing differences in funding of upfront or ongoing transaction expenses or managing credit or interest rate risk of the investments in the trust to ensure that the investments are sufficient to ensure payment or repayment of the securities and related interest or principal payments issued pursuant to a special purpose reinsurance vehicle insurance securitization transaction or the reinsurance vehicle's obligations under the special purpose reinsurance vehicle contract.
[PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §796. No transaction of insurance business by investors in securities

§796. No transaction of insurance business by investors in securities
The securities issued by the special purpose reinsurance vehicle pursuant to a special purpose reinsurance vehicle insurance securitization are not deemed to be insurance or reinsurance contracts. An investor in such securities issued pursuant to insurance securitization or any holder of such securities may not by sole means of this investment or holding be deemed to be transacting an insurance business in this State. The underwriters or selling agents and their partners, directors, officers, members, managers, employees, agents, representatives and advisors involved in an insurance securitization are not deemed to be acting as insurance or reinsurance producers, intermediaries or consultants by virtue of their activities in connection with the special purpose reinsurance vehicle or with the insurance securitization.   [PL 2007, c. 386, §20 (AMD).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW). PL 2007, c. 386, §20 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §796-A. Confidentiality of proprietary information

§796-A. Confidentiality of proprietary information
Any requirement established by this subchapter to file proprietary business information with the superintendent does not in and of itself make that information a public record. Information filed with the superintendent pursuant to this subchapter is entitled to any privileges and confidentiality protections that would apply if the special purpose reinsurance vehicle were a captive insurance company licensed by the superintendent pursuant to section 6702.   [PL 2007, c. 386, §21 (NEW).]
SECTION HISTORY
PL 2007, c. 386, §21 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §797. Authority to adopt rules

§797. Authority to adopt rules
The superintendent may adopt rules necessary to effectuate the purposes of this subchapter. Any rules so adopted do not affect a special purpose reinsurance vehicle insurance securitization in effect at the time of adoption. Rules adopted pursuant to this subchapter are routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.   [PL 2003, c. 249, §2 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 9: KINDS OF INSURANCE; LIMITS OF RISK; REINSURANCE › Subchapter 6: SPECIAL PURPOSE REINSURANCE VEHICLE › 24-A §798. Exemption from insurance laws within limitations

§798. Exemption from insurance laws within limitations
1.  Titles consistent.
A special purpose reinsurance vehicle is subject to chapters 1, 3 and 5 to the extent consistent with this subchapter.
[PL 2003, c. 249, §2 (NEW).]
2.  Provisions not applicable.
No other provisions of this Title are applicable to a special purpose reinsurance vehicle organized under this subchapter, except as expressly provided in this subchapter or in rules adopted by the superintendent pursuant to section 797.
[PL 2003, c. 249, §2 (NEW).]
3.  Variance.
The superintendent may issue an order exempting a special purpose reinsurance vehicle or a protected cell from provisions of this subchapter upon a finding that the variance is necessary for conformance to the laws or regulatory requirements of a ceding insurer's state of domicile and that the variance is consistent with the purposes of this subchapter given the nature of the risks to be insured.
[PL 2007, c. 386, §22 (NEW).]
SECTION HISTORY
PL 2003, c. 249, §2 (NEW). PL 2007, c. 386, §22 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 11: ASSETS AND LIABILITIES › Subchapter 1: ASSETS › 24-A §901. "Assets" defined (REPEALED)

§901. "Assets" defined
(REPEALED)
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1981, c. 501, §42 (AMD). PL 1991, c. 828, §21 (AMD). PL 2001, c. 72, §6 (RP).