Illinois Administrative Code › Title 50 - INSURANCE › Part 1104 - CREDIT FOR REINSURANCE CEDED › Appendix C - Form RJ-1 Certificate of Reinsurer Domiciled in Reciprocal Jurisdiction

Current through Register Vol. 48, No. 28, July 12, 2024
FORM RJ-1
CERTIFICATE OF REINSURER DOMICILED IN RECIPROCAL
				JURISDICTION
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1. Submits to the jurisdiction of any court of competent
				jurisdiction in Illinois for the adjudication of any issues arising out of the
				reinsurance agreement, agrees to comply with all requirements necessary to give
				such court jurisdiction, and will abide by the final decision of such court or
				any appellate court in the event of an appeal. The Assuming Insurer agrees that
				it will include such consent in each reinsurance agreement, if requested by the
				Director. Nothing in this paragraph constitutes or should be understood to
				constitute a waiver of assuming insurer's rights to commence an action in any
				court of competent jurisdiction in the United States, to remove an action to a
				United States District Court, or to seek a transfer of a case to another court
				as permitted by the laws of the United States or of any state in the United
				States. This paragraph is not intended to conflict with or override the
				obligation of the parties to the reinsurance agreement to arbitrate their
				disputes if such an obligation is created in the agreement, except to the
				extent such agreements are unenforceable under applicable insolvency or
				delinquency laws.
2. Designates the Director of the Department of Insurance as
				its lawful attorney upon whom may be served any lawful process in any action,
				suit or proceeding in Illinois arising out of the reinsurance agreement
				instituted by or on behalf of the ceding insurer.
3. Agrees to pay all final judgments, wherever enforcement is
				sought, obtained by a ceding insurer, that have been declared enforceable in
				the jurisdiction where the judgment was obtained.
4. Agrees to provide prompt written notice and explanation if
				it falls below the minimum capital and surplus or capital or surplus ratio, or
				if any regulatory action is taken against it for serious noncompliance with
				applicable law.
5. Confirms that it is not presently participating in any
				solvent scheme of arrangement, which involves insurers domiciled in Illinois.
				If the assuming insurer enters into such an arrangement, the assuming insurer
				agrees to notify the ceding insurer and the Director of the Department of
				Insurance, and to provide 100% security to the ceding insurer consistent with
				the terms of the scheme.
6. Agrees that in each reinsurance agreement it will provide
				security in an amount equal to 100% of the assuming insurer's liabilities
				attributable to reinsurance ceded pursuant to that agreement if the assuming
				insurer resists enforcement of a final U.S. judgment, that is enforceable under
				the law of the territory in which it was obtained, or a properly enforceable
				arbitration award whether obtained by the ceding insurer or by its resolution
				estate, if applicable.
7. Agrees to provide the documentation in accordance with 50
				Ill. Adm. Code 1104.47(c)(5), if requested by the Director of the Department of
				Insurance.
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