Arkansas Administrative Code › Agency 054 - Arkansas Insurance Department › Rule 054.00.96-002 - Credit for Reinsurance - Reg. 65

Current through Register Vol. 49, No. 6, June, 2024
SECTION
		  1. Authority
This regulation is promulgated pursuant to the authority granted
			 to the Arkansas Insurance Commissioner ("Commissioner") by §
								23-62-308 and
			 §
								23-61-108 of the
			 Insurance Code; and the Administrative Procedure Act, Ark. Code Ann.
			 §§
								25-15-201, et
			 seq., and Section 7 of Act 1272 of 1995.
SECTION 2. Purpose
The purpose of this regulation is to set forth rules and
			 procedural requirements which the Commissioner deems necessary to carry out the
			 provisions of the Arkansas Law on Credit for Reinsurance, Ark. Code Ann.
			 §§
								23-62-201,
			 et seq. and §§
								23-62-301,
			 et seq. of the Insurance Code. The actions and information required by this
			 regulation are hereby 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 provisions of this regulation, or their application to any
			 person or circumstance, is held invalid, such determination shall not affect
			 other provisions or applications of this regulation which can be given effect
			 without the invalid provision or application, and to that end the provisions of
			 this regulation are separable.
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 assuming insurers which were licensed in this state as of the date of the
			 ceding insurer's statutory financial statement.
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 which is accredited as a reinsurer in this state as of
		  the date of the ceding insurer's statutory financial statement. An accredited
		  reinsurer is one which:
(1) Files a properly
		  executed Form AR-1 or its successor, attached as exhibit "A" to this
		  regulation, as evidence of its submission to this state's jurisdiction and to
		  this state's authority to examine its books and records; and
(2) Files with the Commissioner a certified
		  copy of a letter or a certificate of authority or of compliance as evidence
		  that it is licensed to transact insurance or reinsurance in at least one state,
		  as defined in Ark. Code Ann. §
									23-60-102(10)
		  as amended by Act 1272 of 1995, 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, as defined in Ark, Code Ann. §
									23-60-102(10)
		  as amended by Act 1272 of 1995; and
(3) Files 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) Maintains a surplus as
		  regards policyholders in an amount not less than $20,000,000 and whose
		  accreditation has not been denied by the Commissioner within ninety (90) days
		  of its submission or, in the case of companies with a surplus as regards
		  policyholders of less than $20,000,000, whose accreditation has been approved
		  by the; Commissioner.