Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 180 - INSURANCE HOLDING COMPANY SYSTEM MODEL RULE WITH REPORTING FORMS AND INSTRUCTIONS › Section 031-180-18 - Transactions Subject to Prior Notice - Notice Filing (Form D)

Current through 2024-29, July 17, 2024
A. An insurer required to give notice of a
				proposed transaction pursuant to Subsection 9 of the Act shall furnish the
				required information on Form D, hereby made a part of this rule.
B. Agreements for cost-sharing services and
				management services shall at a minimum, as applicable:
(1) Identify the person providing services
				and the nature of such services;
(2) Set forth the methods to allocate
				costs;
(3) Require timely
				settlement, not less frequently than quarterly, and compliance with the
				requirements in the NAIC
Accounting Practices and Procedures
				Manual;
(4) Prohibit
				advancement of funds by the insurer to the affiliate except to pay for services
				defined in the agreement;
(5) State
				that the insurer shall maintain oversight for functions provided to the insurer
				by the affiliate and that the insurer shall monitor services at least annually
				for quality assurance;
(6) Define
				records and data of the insurer to include all records and data developed or
				maintained under or related to the agreement for the benefit of the insurer, in
				whatever form maintained, including, but not limited to, claims and claim
				files, policyholder lists, application files, litigation files, premium
				records, rate books, underwriting manuals, personnel records, financial
				records, or similar records within the possession, custody, or control of the
				affiliate;
(7) Specify that all
				records and data of the insurer are and remain the property of the insurer and:
(a) Are subject to control of the
				insurer;
(b) Must be identifiable;
				and
(c) Must be segregated from all
				other persons' records and data or be readily capable of segregation at no
				additional cost to the insurer;
(8) State that all funds and invested assets
				of the insurer are the exclusive property of the insurer, held for the benefit
				of the insurer, and are subject to the control of the insurer;
(9) Include standards for termination of the
				agreement with and without cause;
(10) Include provisions for indemnification
				of the insurer in the event of gross negligence or willful misconduct on the
				part of the affiliate providing the services or any actions by the affiliate
				that violate provisions of the agreement required by Paragraphs (11) through
				(15) of this subsection;
(11)
				Specify that, if the insurer is placed in supervision, seizure,
				conservatorship, or receivership pursuant to Chapter 57 of the
Insurance Code:
(a) All of
				the rights of the insurer under the agreement extend to the receiver or
				Superintendent;
(b) All records and
				data of the insurer shall be identifiable and segregated from all other
				persons' records and data or readily capable of segregation at no additional
				cost to the receiver or the Superintendent;
(c) A complete set of records and data of the
				insurer shall immediately be made available to the receiver or the
				Superintendent, shall be made available in a usable format, shall be turned
				over to the receiver or Superintendent immediately upon the receiver's or the
				Superintendent's request, and the cost to transfer data to the receiver or the
				Superintendent shall be fair and reasonable; and
(d) The affiliate will make available all
				employees essential to the operations of the insurer and the services
				associated therewith for the immediate continued performance of the essential
				services ordered or directed by the receiver or the Superintendent;
(12) Specify that the affiliate
				has no automatic right to terminate the agreement if the insurer is placed into
				supervision, seizure, conservatorship, or receivership pursuant to Chapter 57
				of the
Insurance Code;
(13) Specify a minimum period of time after
				termination of the agreement, during which the affiliate will continue to
				provide the essential services if the insurer is placed into supervision,
				seizure, conservatorship or receivership pursuant to Chapter 57 of the
Insurance Code,
as ordered or directed by the receiver or the
				Superintendent. Performance of the essential services must continue to be
				provided without regard to pre-receivership unpaid fees, so long as the
				affiliate continues to receive timely payment for post-receivership services
				rendered, and unless released by the receiver, Superintendent, or supervising
				court;
(14) Specify that the
				affiliate shall continue to maintain any systems, programs, or other
				infrastructure, notwithstanding supervision, seizure, conservatorship, or
				receivership pursuant to Chapter 57 of the
Insurance Code,
and
				shall make them available to the receiver or Superintendent as ordered or
				directed by the receiver or Superintendent, for so long as the affiliate
				continues to receive timely payment for post-receivership services rendered,
				and unless released by the receiver, Superintendent, or supervising court;
				and
(15) Specify that if the
				insurer is placed into supervision, seizure, conservatorship or receivership
				pursuant to Chapter 57 of the
Insurance Code,
and portions of
				the insurer's policies or contracts are eligible for coverage by one or more
				guaranty associations, the affiliate's commitments under Paragraphs (11)
				through (14) shall extend to those guaranty associations, in furtherance of the
				cooperation between the receiver and the affected guaranty associations and
				subject to the receiver's authority over the insurer.