Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.15-007 - Rule 65: Credit for Reinsurance

Current through Register Vol. 49, No. 6, June, 2024
SECTION
		  1.
AUTHORITY.
This rule is promulgated pursuant to the authority granted to the
			 Arkansas Insurance Commissioner ("Commissioner") by Ark. Code Ann. §§
								23-61-108,
			 23-62-308 and
			 Ark. Code Ann.
			 25-15-201,
et seq.
SECTION
		  2.
PURPOSE.
The purpose of this rule is to set forth instructions and
			 procedural requirements that the Commissioner deems necessary to carry out the
			 provisions of the Arkansas Law on Credit for Reinsurance, Ark. Code Ann.
			 §§
								23-62-301,
et seq.
(the "Acf). The actions and information required by
			 this rule are declared to be necessary and appropriate in the public interest
			 and for the protection of the ceding insurers in this state.
SECTION 3.
SEVERABILITY.
If any provision of this rule, or the application of the
			 provision to any person or circumstance, is held invalid, the remainder of the
			 rule, and the application of the provision to persons or circumstances other
			 than those to which it is held invalid, shall not be affected.
SECTION 4.
CREDIT FOR
		  REINSURANCE - REINSURER LICENSED IN THIS STATE.
Pursuant to Ark. Code Ann. §
								23-62-305(b),
			 the Commissioner shall allow credit for reinsurance ceded by a domestic insurer
			 to an assuming insurer that was licensed in this state as of any date on which
			 statutory financial statement credit for reinsurance is
			 claimed.
SECTION 5.
CREDIT FOR REINSURANCE - ACCREDITED REINSURERS.
A. Pursuant to Ark. Code Ann. §
								23-62-305(c),
		  the Commissioner shall allow credit for reinsurance ceded by a domestic insurer
		  to an assuming insurer that is accredited as a reinsurer in this state as of
		  the date on which statutory financial statement credit for reinsurance is
		  claimed. An accredited reinsurer must:
(1)
		  File a properly executed Form AR-1, attached as exhibit "A" to this rule, as
		  evidence of its submission to this state's jurisdiction and to this state's
		  authority to examine its books and records;
(2) File with the Commissioner a certified
		  copy of a certificate of authority or other acceptable 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;
(3) File 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
(4) Maintain 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.