Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 231 - CERTIFICATES OF AUTHORITY FOR INSURANCE COMPANIES › Section 031-231-3 - General Requirements: Foreign and Alien Insurers

Current through 2024-29, July 17, 2024
Any foreign insurer, or alien insurer entered in another
				  United States jurisdiction, that desires to obtain a Certificate of Authority
				  shall submit an application on the most current Uniform Certificate of
				  Authority Expansion Application form, or its successor form, published by the
				  National Association of Insurance Commissioners or its successor organization,
				  and shall provide all information requested therein and such additional
				  information as the Superintendent may request in the course of reviewing the
				  application, sufficient to demonstrate compliance with the following
				  requirements, except to the extent that particular requirements may be waived
				  or modified by the Superintendent upon a finding that they are not applicable
				  to the circumstances of the application.
A.
Domiciliary Licensure
The Applicant must hold a valid Certificate of Authority from
				  its jurisdiction of domicile which authorizes it to transact those kinds of
				  insurance it proposes to transact in this State. If the Applicant does not
				  write a significant volume of business in its own jurisdiction of domicile, or
				  operates from a home office outside its jurisdiction of domicile, it must
				  explain the reasons to the satisfaction of the Superintendent.
B.
Business Name
The Applicant shall not use a business name deceptively
				  similar to that of any insurer currently holding a valid Certificate of
				  Authority. No application will be entertained that proposes to use a name that
				  has been reserved by another business entity with the Superintendent or the
				  Maine Secretary of State, until the period of reservation has expired or the
				  reserved name has been withdrawn.
C.
Deposit Requirements
(1) If the Applicant is domiciled within the
				United States, it shall provide certification by the insurance regulator or
				other qualified official of its jurisdiction of domicile that qualifying
				securities or other asset deposits are held there with a minimum fair market
				value of $100,000, or such greater amount as that jurisdiction of domicile
				requires of insurers domiciled in this State, as security for all its
				policyholders.
(2) If the Applicant
				is not domiciled within the United States, it shall provide certification by
				the insurance supervisory official in its United States port of entry
				jurisdiction, and in any other United State jurisdiction(s) where assets might
				be held for the purposes of complying with the requirements of this Subsection,
				that qualifying assets or securities are held there in full compliance with
				laws substantially similar to the relevant provisions of
				 24-AM.R.S.A.
				§413-A and Bureau of Insurance Rule 860
				or to comparable model laws of the National Association of Insurance
				Commissioners. The total amount must be at least the sum of all of the
				Applicant's liabilities under insurance contracts in force in the United
				States, the capital and/or surplus required pursuant to Subsection D, and any
				additional liabilities that must be secured by the trust(s) and/or deposit(s)
				used to satisfy this requirement pursuant to the laws of the port of entry
				jurisdiction or pursuant to the terms of the governing trust or deposit
				documents. The Applicant must be currently listed on the Quarterly Listing of
				Alien Insurers published by the National Association of Insurance
				Commissioners, or its successor publication, or provide documentation
				satisfactory to the Superintendent explaining why it is not listed and why that
				does not reflect adversely on the soundness of the insurer. In reviewing the
				adequacy of the Applicant's United States trust assets, the Superintendent
				shall consider any reviews conducted by the National Association of Insurance
				Commissioners.
(3) If the assets
				held in the jurisdiction of domicile or United States port of entry are
				insufficient to meet the requirements of this Subsection, the Applicant may not
				be issued a Certificate of Authority, until it deposits with the Maine State
				Treasurer a supplemental deposit sufficient to remedy the deficiency, to be
				held for the benefit of the Applicant's policyholders in compliance with the
				requirements of 24-AM.R.S.A. Chapter 15 (§§ 1251
et
				seq.
).
(4) In determining
				whether the Applicant is financially qualified to do business in Maine, the
				Superintendent has the discretion to consider a supplemental security deposit
				posted by or on behalf of the Applicant with the Treasurer of State as security
				for all its policyholders.