reglab/statecodes huggingface dataset:
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2301 - Schedule F, Life Statement

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
All insurers authorized to transact life insurance or
						life and disability insurance in the State of California are hereby required
						hereafter to list in Schedule F, irrespective of the presence or absence of
						litigation, all claims in fact resisted or compromised during the year covered
						by the annual statement of which such Schedule F is a part, and all claims
						remaining resisted at the end of such year.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2302 - Method of Reporting Salvage or Subrogation Recoveries on Annual or Interim Financial Statements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
For purposes of the Annual Statement required of insurers
						to be filed with the Commissioner on or before the first day of March of each
						year or any interim financial statement filed with the Commissioner during the
						year by an insurer, anticipated salvage recoveries or anticipated subrogation
						recoveries shall have been reduced to cash or any asset readily convertible to
						cash.
1. New
						section filed 11-17-76; effective thirtieth day thereafter (Register 76, No.
						47).
Note: Authority cited: Sections
						  923 and
						  12921,
						  Insurance Code. Reference: Section
						  907,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303 - Reinsurance Accounting, Agreements and Oversight

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Sections
						2303 through
						2303.30 of this article set forth
						the principal requirements of substance and procedure in accounting for
						reinsurance on insurer financial statements, the general requirements
						applicable to reinsurance agreements, and related sanctions and oversight. The
						sections are applicable to insurers licensed, accredited, or certified in
						California, the approved U.S. trusts of otherwise unauthorized reinsurers,
						licensed reinsurance intermediaries, and reserve financing arrangements
						pertaining to life insurance policies issued by domestic life insurers
						containing guaranteed non-level gross premiums, guaranteed non-level benefits
						and universal life insurance policies with secondary guarantees. The sections
						may be referred to as the Reinsurance Oversight Regulations.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect amending section and NOTE
						filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Amendment of section and
						NOTE filed 11-27-2017; operative 1-1-2018 (Register 2017, No.
						48).
Note: Authority cited: Sections
						  720,
						  730,
						  736,
						  739.9,
						  922.8,
						  922.85,
						  923,
						  924,
						  1011.5,
						  1215.9,
						  1781.12,
						  10489.94
						  and
						  12921,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  700,
						  701,
						  717,
						  717.5,
						  730,
						  733,
						  736,
						  739,
						  900,
						  922.1,
						  922.2,
						  922.3,
						  922.31,
						  922.4,
						  922.41,
						  922.42,
						  922.43,
						  922.5,
						  922.6,
						  922.7,
						  922.8,
						  922.85,
						  922.9,
						  923,
						  924,
						  925,
						  925.2,
						  925.4,
						  1011,
						  1011.5,
						  1215.5(b)(3),
						  1215.5(f),
						  1781.10,
						  10489.1,
						  10489.12,
						  10489.96
						  and
						  12921,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.1 - Purpose

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Sections
						2303 through
						2303.22 of this article set forth
						requirements for the proper and uniform preparation by licensed insurers of the
						financial statements required by the California Insurance Code and the
						requirements for acceptable reinsurance arrangements. The requirements are
						intended to elicit from insurers a true exhibit of their financial condition
						and to safeguard the solvency of licensees. The sections give notice as to the
						manner in which the Commissioner will exercise the discretion set forth in Code
						Sections 700,
						701,
						704,
						717,
						730,
						733,
						922.2 through
						922.85,
						923,
						924,
						925,
						925.2,
						925.4,
						1011,
						1011.5,
						1215.5(b)(3),
						1215.5(f),
						1781.10, and Section
						12921 of the Code as respects
						accounting for reinsurance in insurer financial statements, acceptable
						reinsurance arrangements, and regulatory oversight. All statutory references
						are to the California Insurance Code ("Code") unless otherwise stated.
The duties and the discretion of the Insurance
						Commissioner conferred by statute to ensure proper accounting for reinsurance
						and oversight of reinsurance arrangements are not exhausted by these
						regulations.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect amending first paragraph
						and NOTE filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Amendment filed 11-27-2017;
						operative 1-1-2018 (Register 2017, No. 48).
Note: Authority cited: Sections
						  720,
						  730,
						  736,
						  922.8,
						  922.85,
						  923,
						  924,
						  1011.5,
						  1215.9,
						  1781.12 and
						  12921,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  700,
						  701,
						  717,
						  717.5,
						  730,
						  733,
						  736,
						  900,
						  922.1,
						  922.2,
						  922.3,
						  922.31,
						  922.4,
						  922.41,
						  922.42,
						  922.43,
						  922.5,
						  922.6,
						  922.7,
						  922.8,
						  922.85,
						  922.9,
						  923,
						  924,
						  925,
						  925.2,
						  925.4,
						  1011,
						  1011.5,
						  1215.5(b)(3),
						  1215.5(f),
						  1781.10 and
						  12921,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.2 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
As used in this article:
(a) "Accredited reinsurer" means an insurer
					 that has been accredited pursuant to Code Section
					 922.4(b) and
					 Section 2303.4 of this article.
(b) "Actuarial Method"means the methodology
					 used to determine the Required Level of Primary Security, as described in
					 section 2303.26.
(c) "Alien insurer" means an insurer
					 organized under the laws of any jurisdiction other than a State of the United
					 States.
(d) "Approved U.S. trust"or
					 "U.S. trust"means the multiple beneficiary trust established by an insurer or
					 group of insurers to secure obligations under reinsurance agreements, which
					 have been approved pursuant to the provisions of Code Section
					 922.4(d) and
					 Section 2303.5 of this article.
(e) "Assuming insurer" or "reinsurer" means
					 the insurer to which risk is transferred under a reinsurance
					 agreement.
(f) "Ceding insurer"
					 means the insurer that transfers risk to another insurer under a reinsurance
					 agreement.
(g) "Certified
					 reinsurer" means an insurer that has been certified pursuant to Code Section
					 922.41.
(h) "Commissioner" means the California
					 Insurance Commissioner.
(i)
					 "Covered Policies"means, subject to the exemptions described in Section
					 2303.25 of this article, those
					 policies, other than Grandfathered Policies, of the following policy types:
1. Life insurance policies with guaranteed
					 non-level gross premiums and/or guaranteed non-level benefits, except for
					 flexible premium universal life insurance policies; or,
2. Flexible premium universal life insurance
					 policies with provisions resulting in the ability of a policyholder to keep a
					 policy in force over a secondary guarantee period.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.3 - Credit for Reinsurance Ceded to Admitted Insurer

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Credit on financial statements shall be allowed for
						reinsurance ceded to an assuming insurer that was licensed in California as of
						the date on which statutory financial statement credit for reinsurance is
						claimed, unless (1) the assuming insurer is the subject of a regulatory order
						or regulatory oversight on the grounds of hazardous financial condition by any
						state in which it is licensed, (2) the cession of a domestic insurer is not in
						compliance with the applicable provisions of Sections
						2303.11 through
						2303.13 of this article, or (3)
						the assuming insurer was not licensed or otherwise permitted to write or assume
						the lines or classes of business in its state of domicile.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect amending section and NOTE
						filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
Note: Authority cited: Sections
						  922.8,
						  922.85 and
						  923,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  922.2,
						  922.3,
						  922.4,
						  922.6 and
						  923,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.4 - Credit for Reinsurance Ceded to Accredited Reinsurer

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Credit on financial statements shall be
					 allowed for reinsurance ceded to an assuming insurer that is an accredited
					 reinsurer in California as of the date on which statutory financial statement
					 credit for reinsurance is claimed, unless (1) the assuming insurer is the
					 subject of a regulatory order or regulatory oversight on the grounds of
					 hazardous financial condition by any state in which it is licensed, (2) the
					 cession of a domestic insurer is not in compliance with the applicable
					 provisions of Sections
					 2303.11 through
					 2303.13 of this article, or (3)
					 the assuming insurer was not licensed or otherwise permitted to write or assume
					 the lines or classes of business in its state of domicile.
(b) A reinsurer seeking accreditation shall
					 file an application with the Commissioner that must include:
1. An executed Certificate of Assuming
					 Insurer Form AR-1, published in Section
					 2303.22(a) of
					 this article, wherein the reinsurer:
A.
					 Submits to the authority of the Commissioner to examine its books and records,
					 and agrees to bear the expense of such examination or examinations;
					 and
B. Affirms it has attached to
					 such Certificate a current list of its ceding insurers domiciled in California,
					 and undertakes to submit to the Commissioner additions to or deletions from
					 such list at least once per calendar quarter.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.5 - Credit for Reinsurance Secured by an Approved U.S. Trust

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Credit on financial statements shall be
					 allowed for reinsurance ceded to an assuming insurer that, as of any date on
					 which statutory financial statement credit for reinsurance is claimed and
					 thereafter for so long as credit for reinsurance is claimed, maintains an
					 approved U.S. trust as security for the payment of the valid claims of its U.S.
					 domiciled ceding insurers, their assigns and successors in interest, unless the
					 cession of a domestic insurer is not in compliance with the applicable
					 provisions of Sections
					 2303.11 through
					 2303.13 of this article. As used
					 in this section, "assuming insurer" includes all categories of insurers
					 described in Code Section
					 922.4(d)(4).
(b) An assuming insurer seeking approval of a
					 U.S. trust under Code Section
					 922.4(d) may file
					 an application with the Commissioner in the manner set forth in Section
					 2303.21(d) of
					 this article. The application shall include:
1. A copy of the trust document, certified by
					 the commissioner of the Oversight State. As used in this section, "Oversight
					 State" means the state where the trust is domiciled or the state whose
					 commissioner has accepted principal regulatory oversight of the trust pursuant
					 to the terms of the trust agreement;
2. A certified copy of the approval of the
					 form of the trust issued by the commissioner of the Oversight State;
3. An independent audit report;
4. An actuarial opinion;
5. Copies of all documents submitted to the
					 Oversight State, unless the Commissioner has agreed that copies of specified
					 documents need not be provided;
6.
					 An executed Certificate of Assuming Insurer Form AR-1, published in Section
					 2303.22(a) of
					 this article, wherein the assuming insurer:
A. Submits to the authority of the
					 Commissioner to examine its books and records, and agrees to bear the expense
					 of any such examination; and
B.
					 Affirms it has attached to the Certificate a current list of its ceding
					 insurers domiciled in California, and undertakes to submit additions to or
					 deletions from the list to the Commissioner at least once per calendar quarter,
					 unless, for good cause shown, the Commissioner permits a different reporting
					 interval for additions to or deletions from the list;
7. An executed Designation of Agent for
					 Service of Process and Consent to Jurisdiction Form AR-2, published in Section
					 2303.22(b) of
					 this article; and
8. Any other
					 documents requested by the Commissioner.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.6 - Credit for Reinsurance Required by Law

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
As used in Code Section
						922.4(f),
						"jurisdiction" means a state, district, or territory of the United
						States.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect amending section and NOTE
						filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Change without regulatory
						effect amending section and NOTE filed 12-28-2020 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2021, No. 1). Filing deadline specified in Government
						Code section
						11349.3(a)
						extended 60 calendar days pursuant to Executive Order
						N-40-20.
Note: Authority cited: Sections
						  922.8 and
						  922.85,
						  Insurance Code. Reference: Section
						  922.4(f),
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.7 - Credit for Reinsurance Secured by a Single Beneficiary Trust

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Credit on
					 financial statements of a domestic insurer shall be allowed for reinsurance
					 ceded to an assuming insurer to the extent of funds held in a trust acceptable
					 to the Commissioner for the exclusive benefit of the ceding insurer as security
					 for the payment of obligations under the reinsurance contract, unless the
					 cession is not in compliance with this section and the applicable provisions of
					 Sections 2303.11 through
					 2303.13 of this article. The
					 amount of the credit shall not exceed the liabilities carried by the ceding
					 insurer.
(b) As used in this
					 subdivision:
1. "Beneficiary" means the
					 domestic insurer for whose sole benefit the trust has been established, and
					 includes any successor by operation of law of the named beneficiary, including
					 without limitation any liquidator, rehabilitator, receiver or
					 conservator.
2. "Grantor" means the
					 insurer that has established the trust for the sole benefit of the
					 beneficiary.
3. "Trustee" means a
					 qualified United States financial institution as defined in Section
					 922.7(b) of the
					 Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.8 - Credit for Reinsurance Secured by Letter of Credit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Credit on financial statements of a
					 domestic insurer shall be allowed for reinsurance ceded to an assuming insurer,
					 in an amount not exceeding the liabilities carried by the ceding insurer, to
					 the extent that security is provided by a letter of credit satisfactory to the
					 Commissioner, unless the cession is not in compliance with the applicable
					 provisions of Sections
					 2303.11 through
					 2303.13 of this article.
(b) As used in this section:
1. "Beneficiary" means the domestic insurer
					 for whose sole benefit the letter of credit has been established by an issuing
					 or confirming bank, and includes any successor by operation of law of the named
					 beneficiary, including without limitation any liquidator, rehabilitator,
					 receiver or conservator.
2.
					 "Applicant" means the reinsurer that applies for and causes the letter of
					 credit to be issued.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.9 - Credit for Reinsurance Secured by Funds Withheld

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Credit on financial statements of a
					 domestic insurer shall be allowed for reinsurance ceded to an unauthorized
					 reinsurer, in an amount not exceeding the liabilities carried by the ceding
					 insurer, to the extent of unencumbered funds withheld by the ceding insurer as
					 security for payment of the reinsurer's obligations under the reinsurance
					 agreement, unless the cession is not in compliance with applicable requirements
					 of Sections
					 2303.11 through
					 2303.13 of this article.
(b) As used in subdivision (a) of this
					 section, "unencumbered funds withheld" means funds that are held in the United
					 States solely in the name of and under the exclusive control of the ceding
					 insurer. For purposes of this section, "exclusive control of the ceding
					 insurer" includes (1) funds held in an escrow or trust account where the ceding
					 insurer has the sole right to withdraw assets from the account at any time and
					 without prior notice to the reinsurer, and (2) funds held in an escrow or trust
					 account to secure a cession to an affiliate. The agreement establishing the
					 escrow or trust account shall be in a form satisfactory to the
					 Commissioner.
(c) A denial of
					 statement credit under this section shall be made in the manner prescribed in
					 Section 2303.18(c) of
					 this article.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect amending NOTE filed
						3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Amendment of subsection (c)
						filed 11-27-2017; operative 1-1-2018 (Register 2017, No.
						48).
Note: Authority cited: Sections
						  922.8,
						  922.85 and
						  923,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  922.2,
						  922.3,
						  922.5 and
						  923,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.10 - Credit for Reinsurance of Foreign Insurers

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Credit for reinsurance shall be allowed to the extent
						that credit is allowed by the foreign insurer's state of domicile, provided
						that the domestic state is accredited by the National Association of Insurance
						Commissioners (NAIC), or the domestic state regulator has financial solvency
						requirements substantially similar to the requirements necessary for NAIC
						accreditation.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect amending section filed
						3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
Note: Authority cited: Sections
						  922.8 and
						  923,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  922.3,
						  922.6 and
						  923,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.12 - Transfer of Risk - Property and Casualty

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
This section applies only to property and casualty
						insurance.
(a) Transfer of risk shall
					 be determined by application of the risk transfer requirements of the NAIC
					 Accounting Guidance. In the review of a reinsurance agreement to determine
					 transfer of risk, all contracts between the domestic ceding insurer, the
					 reinsurer, and their respective affiliates, may, in the Commissioner's
					 discretion, be reviewed to evaluate contractual features that may (1) limit the
					 amount of insurance risk to which the reinsurer is subject under the agreement,
					 or (2) delay the timely reimbursement of claims by the reinsurer.
(b) A denial of statement credit for failure
					 of risk transfer shall be made in the manner prescribed in Section
					 2303.18(c) of
					 this article.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect amending subsection (a)
						filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Amendment of subsection (b)
						filed 11-27-2017; operative 1-1-2018 (Register 2017, No.
						48).
Note: Authority cited: Section
						  922.8,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  922.3 and
						  923,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.13 - Contract Requirements for Statement Credit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Credit for reinsurance may be claimed by
					 a domestic ceding insurer only for an agreement that meets the requirements of
					 this section.
(b) A reinsurance
					 agreement of a domestic insurer ceding property and casualty business shall
					 expressly state that it constitutes the entire agreement between the parties
					 with respect to the business covered by the agreement, except for separate
					 contracts expressly disclosed within the agreement or in an exhibit
					 incorporated by reference. The entire agreement clause may provide that it
					 shall not be construed to limit the admissibility of evidence regarding the
					 formation, interpretation, purpose or intent of the reinsurance
					 agreement.
(c) The agreement shall
					 contain an acceptable insolvency clause, conforming to the requirements of Code
					 Section 922.2(a)(2).
(d) The agreement shall meet the credit for
					 reinsurance requirements of the NAIC Accounting Guidance that are not
					 inconsistent with the requirements of this article.
(e) Reinsurance of individual risks pursuant
					 to facultative certificates issued by the reinsurer shall not be required to
					 comply with subdivision (b) of this section.
(f) A denial of statement credit shall be
					 made in the manner prescribed in Section
					 2303.18(c) of
					 this article.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect amending subsections (a)
						and (b), repealing former subsection (c), relettering subsections and amending
						newly designated subsection (c) filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Amendment of subsection (f)
						filed 11-27-2017; operative 1-1-2018 (Register 2017, No.
						48).
Note: Authority cited: Section
						  922.8,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  922.2,
						  922.3 and
						  923,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.14 - Form of Agreements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 This section specifies contract provisions required to be included in a
					 reinsurance contract for which a domestic insurer claims statement credit. The
					 failure to follow a requirement does not result in a denial of statement
					 credit, but rather a determination that the reinsurance contract is deficient
					 as to form. One or more reinsurance contracts that are deficient as to form may
					 be sufficient to support a finding that the insurer's reinsurance arrangements
					 are materially deficient for purposes of Code Section
					 700(c) and
					 717(d).
(b) A reinsurance contract shall be
					 determined to be deficient as to form if it does not comply with each of the
					 following requirements:
1. If an agreement
					 contains an "early termination" provision wherein a party may terminate the
					 agreement upon the occurrence of specified conditions, the following
					 requirements apply to a termination by the reinsurer:
A. The basis for termination may not include
					 the entry of an order of rehabilitation, conservation or liquidation against
					 the ceding insurer.
B. The
					 provision shall require written notice to the ceding insurer of not less than
					 sixty (60) days prior to the effective date of termination.
C. The provision shall require signature upon
					 delivery of the notice and may specify procedures to establish proof of
					 attempted service if signature is refused.
D. The provision may state that upon receipt
					 of a notice sent by the reinsurer, the ceding insurer may consent to a lesser
					 notice period.
E. The provision may
					 state that it shall not be construed to include termination of the contract for
					 cause.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.15 - Oversight of Reinsurance Transactions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) It is a condition to the issuance of a
					 Certificate of Authority that the policyholder surplus of a licensed insurer
					 shall at the time of admission and at all times subsequent be reasonable in
					 relation to the insurer's outstanding liabilities and adequate to its financial
					 needs, as determined by applying the following factors, among others:
1. The size of the insurer, as measured by
					 its assets, capital and surplus, reserves, premium writings, insurance in
					 force, and other appropriate criteria.
2. The extent to which the insurer's business
					 is diversified among the several lines of insurance.
3. The number and size of risks insured in
					 each line of business.
4. The
					 extent of the geographical dispersion of the insurer's insured risks.
5. The nature and extent of the insurer's
					 reinsurance program.
6. The
					 quality, diversification, and liquidity of the insurer's investment
					 portfolio.
7. The recent past and
					 projected future trend in the size of the insurer's investment
					 portfolio.
8. The recent past and
					 projected future trend in the size of the insurer's surplus, and the
					 policyholder surplus maintained by other comparable insurers.
9. The adequacy of the insurer's
					 reserves.
10. The quality and
					 liquidity of investments in subsidiaries made under Code Section
					 1215.1. The Commissioner may treat
					 any such investment as a disallowed asset for purposes of determining the
					 adequacy of the policyholder's surplus whenever, in the Commissioner's
					 judgment, the investment so warrants.
11. The quality of the company's earnings and
					 the extent to which the reported earnings include extraordinary accounting
					 items.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.16 - Examination of Reinsurance Intermediaries

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The Commissioner may examine the business
					 and affairs of a reinsurance intermediary whenever the Commissioner deems
					 necessary, or upon application as provided in this article. The examination
					 shall include a determination of the intermediary's compliance with applicable
					 provisions of the California Insurance Code and its ability to fulfill its
					 obligations.
(b) An application for
					 an examination by the Commissioner of a licensed reinsurance intermediary may
					 be made by a licensed insurer on behalf of the intermediary, or by the
					 intermediary. The application shall include:
1. A copy of each financial statement
					 provided by the intermediary to its client insurers within the three years
					 prior to the filing of the application;
2. A copy of each audit report with an "as
					 of" date within the three years prior to the filing of the application, along
					 with responses to the report findings, if any;
3. If the intermediary is not independently
					 audited, an un-audited balance sheet, income statement, and statement of cash
					 flow, each with an "as of" date of not more than 120 days;
4. A statement of funds held in fiduciary
					 accounts;
5. A description of any
					 professional liability or fidelity insurance policies or bonds naming the
					 intermediary as an insured or principal;
6. If the application is requested by an
					 insurer on behalf of an intermediary, a written consent by the intermediary to
					 the examination; and
7. Additional
					 documents and records as may be requested by the
					 Commissioner.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.17 - Reporting of Regulatory Action

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An insurer that is either licensed or accredited in this
						state shall provide written notice to the Department within five (5) days of
						receipt of notice in any form or manner that it is the subject of a regulatory
						order or regulatory oversight by any state in which it is licensed concerning a
						hazardous financial condition. Where the regulatory action is confidential,
						disclosure to the Department is required only if permitted by the regulator
						issuing the order or initiating the oversight.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect renumbering former section
						2303.17 to section
						2303.16 and renumbering former
						section 2303.18 to new section
						2303.17 filed 3-25-2015 pursuant
						to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Amendment of NOTE filed
						11-27-2017; operative 1-1-2018 (Register 2017, No.
						48).
Note: Authority cited: Sections
						  720,
						  730,
						  922.8,
						  1011.5 and
						  12921,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  700,
						  717,
						  730,
						  733,
						  922.4,
						  923,
						  925,
						  925.2,
						  925.4,
						  1011,
						  1215.5(f)
						  and
						  12921,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.19 - Commissioner's Discretion

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The Commissioner may exercise discretion in requiring
						strict compliance with the requirements of Sections
						2303.1 through
						2303.22 of this article where the
						Commissioner determines that (1) the variance is reasonable and justifiable in
						relation to the insurer's overall financial condition, (2) the true financial
						condition of the insurer may be elicited from analysis of the financial
						statements and other public documents as may be filed, and (3) compliance would
						cause undue hardship to the insurer.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect renumbering former section
						2303.19 to section
						2303.18 and renumbering former
						section 2303.20 to new section
						2303.19, including amendment of
						NOTE, filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Amendment filed 11-27-2017;
						operative 1-1-2018 (Register 2017, No. 48).
Note: Authority cited: Sections
						  720,
						  730,
						  736,
						  922.8,
						  922.85,
						  923,
						  1011.5,
						  1215.9 and
						  12921,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  700,
						  701,
						  717,
						  717.5,
						  730,
						  733,
						  736,
						  900,
						  922.1,
						  922.2,
						  922.4,
						  922.41,
						  922.5,
						  922.6,
						  923,
						  924,
						  925,
						  925.2,
						  925.4,
						  1011,
						  1011.5,
						  1215.5(b)(3),
						  1215.5(f)
						  and
						  12921,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.20 - Insurer Default for Failure to Comply

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
For purposes of Code Section
						701, "governmental control"
						includes the requirements placed upon licensed insurers by this
						article.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect renumbering former section
						2303.20 to section
						2303.19 and renumbering former
						section 2303.21 to new section
						2303.20 filed 3-25-2015 pursuant
						to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
Note: Authority cited: Section
						  720,
						  Insurance Code. Reference: Section
						  701,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.23 - Term and Universal Life Insurance Reserve Financing, Purpose and Intent

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Sections
						2303.23 through
						2303.28 establish standards
						governing reserve financing arrangements pertaining to life insurance policies
						issued by domestic life insurers containing guaranteed non-level gross
						premiums, life insurance policies containing guaranteed non-level benefits, and
						universal life insurance policies with secondary guarantees; and are intended
						to ensure that, with respect to each such financing arrangement, funds
						consisting of Primary Security and Other Security, as defined in Section
						2303.2 of this article, are held
						by or on behalf of ceding insurers in the forms and amounts required herein. In
						general, reinsurance ceded for reserve financing purposes has one or more of
						the following characteristics: some or all of the assets used to secure the
						reinsurance treaty or to capitalize the reinsurer (1) are issued by the ceding
						insurer or its affiliates; or (2) are not unconditionally available to satisfy
						the general account obligations of the ceding insurer; or (3) create a
						reimbursement, indemnification or other similar obligation on the part of the
						ceding insurer or any if its affiliates (other than a payment obligation under
						a derivative contract acquired in the normal course of business and used to
						support and hedge liabilities pertaining to the actual risks in the policies
						ceded pursuant to the reinsurance treaty).
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect renumbering former section
						2303.23 to section
						2303.22 and renumbering former
						section 2303.24 to new section
						2303.23, including amendment of
						NOTE, filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Renumbering of former
						section 2303.23 to new section
						2303.30 and new section
						2303.23 filed 11-27-2017;
						operative 1-1-2018 (Register 2017, No. 48).
Note: Authority cited: Sections
						  739.9,
						  922.85,
						  923,
						  10489.94
						  and
						  12921,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  739,
						  900,
						  922.4,
						  922.5,
						  922.85,
						  923,
						  10489.1,
						  10489.12,
						  10489.96
						  and
						  12921,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.24 - Term and Universal Life Insurance Reserve Financing, Applicability

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Sections
						2303.23 through
						2303.28 of this article shall
						apply to reinsurance treaties that cede liabilities pertaining to Covered
						Policies, as that term is defined in Section
						2303.2(i), issued
						by any life insurance company domiciled in this state. Sections
						2303.23 through
						2303.28 and Sections
						2303.1 through
						2303.22 of this article shall both
						apply to such reinsurance treaties; provided, that in the event of a direct
						conflict between a provision of Sections
						2303.23 through
						2303.28, and a provision of
						Sections 2303.1 through
						2303.22, of this article, the
						provision of Sections
						2303.1 through
						2303.22 of this article shall be
						construed to be inapplicable, but only to the extent necessary in order to
						resolve the conflict.
1. New
						section filed 10-24-2006; operative 11-23-2006 (Register 2006, No.
						43).
2. Change without regulatory effect renumbering former section
						2303.24 to section
						2303.23 and renumbering former
						section 2303.25 to new section
						2303.24, including amendment of
						NOTE and Form AR-1, filed 3-25-2015 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2015, No. 13).
3. Renumbering of former
						section 2303.24 to section
						2303.22 and new section
						2303.24 filed 11-27-2017;
						operative 1-1-2018 (Register 2017, No. 48).
Note: Authority cited: Sections
						  739.9,
						  922.85,
						  923,
						  10489.94
						  and
						  12921,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  739,
						  900,
						  922.4,
						  922.5,
						  922.85,
						  923,
						  10489.1,
						  10489.12,
						  10489.96
						  and
						  12921,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.25 - Term and Universal Life Insurance Reserve Financing, Exemptions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Sections
						2303.23,
						2303.24,
						2303.26,
						2303.27 and
						2303.28 of this article do not
						apply to:
(a) Reinsurance of:
1. Policies that satisfy the criteria for
					 exemption set forth in Section
					 2542.5(f) of
					 article 12.3 or Section
					 2542.5(g) of
					 article 12.3; and which are issued before the later of:
A. The effective date of Sections
					 2303.23 through
					 2303.28 of this article,
					 and
B. The date on which the ceding
					 insurer begins to apply the provisions of VM-20 to establish the ceded
					 policies' statutory reserves, but in no event later than January 1,
					 2020.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.28 - Term and Universal Life Insurance Reserve Financing, Prohibition Against Avoidance

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No insurer that has Covered Policies as to which sections
						2303.23 through
						2303.28 of this article apply, as
						set forth in Section
						2303.24, shall take any action or
						series of actions, or enter into any transaction or arrangement or series of
						transactions or arrangements if the purpose of such action, transaction or
						arrangement or series thereof is to avoid the re-quirements of this regulation,
						or to circumvent its purpose and intent, as set forth in Section
						2303.23 of this
						article.
1. New
						section filed 11-27-2017; operative 1-1-2018 (Register 2017, No. 48). For prior
						history, see Register 2015, No. 13
Note: Authority cited: Sections
						  739.9,
						  922.85,
						  923,
						  10489.94
						  and
						  12921,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  739,
						  900,
						  922.4,
						  922.5,
						  922.85,
						  923,
						  10489.1,
						  10489.12,
						  10489.96
						  and
						  12921,
						  Insurance Code.
California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 3 - Insurers › Article 3 - Annual Statements › Premiums in Course of Collection › Section 2303.29 - Severability

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If any provision of this article, or the application of a
						provision to any person or circumstance, shall be held invalid, the remainder
						of the article, and the application of the provision to persons or
						circumstances other than those to which it is held invalid, shall not be
						affected.
1.
						Renumbering of former section
						2303.22 to new section
						2303.29, including amendment of
						NOTE, filed 11-27-2017; operative 1-1-2018 (Register 2017, No.
						48).
Note: Authority cited: Sections
						  720,
						  730,
						  736,
						  739.9,
						  922.8,
						  922.85,
						  923,
						  1011.5,
						  1215.9,
						  10489.94
						  and
						  12921,
						  Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989);
						  and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994).
						  Reference: Sections
						  700,
						  701,
						  717,
						  717.5,
						  730,
						  733,
						  736,
						  739,
						  900,
						  922.1,
						  922.2,
						  922.3,
						  922.31,
						  922.4,
						  922.41,
						  922.42,
						  922.43,
						  922.5,
						  922.6,
						  922.85,
						  923,
						  924,
						  925,
						  925.2,
						  925.4,
						  1011,
						  1011.5,
						  1215.5(b)(3),
						  1215.5(f),
						  10489.1,
						  10489.12,
						  10489.96
						  and
						  12921,
						  Insurance Code.