reglab/statecodes huggingface dataset:
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3825 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - RESTRICTION ON PERCENTAGE OF TRUST INVESTMENT SHARED BY GRANTOR OR BENEFICIARY

Current through Register Vol. 13, July 5, 2024
(1) For purposes of
				33-2-1216(5),
				MCA, there can be no more than five percent of the total investments of the
				trust that involve investments in, or issued by, an entity controlling,
				controlled by, or under common control of either the grantor or beneficiary of
				the trust.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216, MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3826 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - ALLOWABLE GOVERNMENT OBLIGATIONS

Current through Register Vol. 13, July 5, 2024
(1) For purposes of
				33-2-1216(5),
				MCA, government obligations are allowable if they are not in default as to
				principal or interest, are valid and legally authorized, and are issued,
				assumed, or guaranteed by:
(a) the United
				States or by any agency or instrumentality of the United States;
(b) a state of the United States;
(c) a territory, possession, or other
				governmental unit of the United States;
(d) an agency or instrumentality of a
				governmental unit allowed in this rule, if the obligations shall be payable, as
				to both principal and interest, from taxes or adequate specifically ordered
				revenues provided for making these payments; or
(e) the government of any other country that
				is a member of the Organization for Economic Cooperation and Development and
				whose government obligations are rated A or higher, or the equivalent, by a
				rating agency recognized by the Securities Valuation Office of the
				NAIC.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3827 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - ALLOWABLE NONGOVERNMENT OBLIGATIONS

Current through Register Vol. 13, July 5, 2024
(1) For purposes of
				33-2-1216(5),
				MCA, nongovernment obligations are allowable if they are:
(a) issued in the United States;
(b) dollar-denominated and issued in a
				non-United States market by a solvent United State institution (other than an
				insurance company); or
(c) assumed
				or guaranteed by a solvent United States institution (other than an insurance
				company).
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3828 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - ADDITIONAL RESTRICTIONS ON GOVERNMENT OBLIGATIONS AND NONGOVERNMENT OBLIGATIONS

Current through Register Vol. 13, July 5, 2024
(1) The following
				apply to allowable government and nongovernment obligations used to fulfill the
				requirements of
				33-2-1216, MCA, trust fund
				investments:
(a) An investment in or loan
				upon the obligations of an institution other than an institution that issues
				mortgage-related securities shall not exceed five percent of the assets of the
				trust;
(b) An investment in any one
				mortgage-related security shall not exceed five percent of the assets of the
				trust; and
(c) The aggregate total
				investment in mortgage-related securities shall not exceed 25% of the assets of
				the trust.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3829 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - ALLOWABLE EQUITY INTERESTS

Current through Register Vol. 13, July 5, 2024
(1) Investments in
				common shares or partnership interests of a solvent U.S. institution are
				permissible for purposes of
				33-2-1216(5),
				MCA, if the equity interests of the institution (except an insurance company)
				are registered on a national securities exchange as provided in the Securities
				Exchange Act of 1934, 15
				U.S.C. sections 78a to 78kk or otherwise
				registered pursuant to that Act, and if otherwise registered, price quotations
				for them are furnished through a nationwide automated quotations system
				approved by the Financial Industry Regulatory Authority, or successor
				organization. A trust shall not invest in equity interests under this paragraph
				an amount exceeding one percent of the assets of the trust even though the
				equity interests are not so registered and are not issued by an insurance
				company.
(2) Investments in common
				shares of a solvent institution organized under the laws of a country that is a
				member of the Organization for Economic Cooperation and Development are
				permissible for purposes of
				33-2-1216(5),
				MCA, if:
(a) all its obligations are rated A
				or higher, or the equivalent, by a rating agency recognized by the Securities
				Valuation Office of the NAIC; and
(b) the equity interests of the institution
				are registered on a securities exchange regulated by the government of a
				country that is a member of the Organization for Economic Cooperation and
				Development.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3830 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - ALLOWABLE OBLIGATIONS ISSUED, ASSUMED, OR GUARANTEED BY MULTINATIONAL DEVELOPMENT BANK

Current through Register Vol. 13, July 5, 2024
(1) For purposes of
				33-2-1216(5),
				MCA, obligations issued, assumed, or guaranteed by a multinational development
				bank, provided the obligations are rated A or higher, or the equivalent, by a
				rating agency recognized by the Securities Valuation Office of the NAIC are
				allowable.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3831 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - ALLOWABLE INVESTMENT COMPANIES

Current through Register Vol. 13, July 5, 2024
(1) For purposes of
				33-2-1216(5),
				MCA, securities of an investment company registered pursuant to the Investment
				Company Act of 1940, 15 U.S.C. section 80a, are permissible investments if the
				investment company:
(a) invests at least 90%
				of its assets in the types of securities that qualify as an investment under
				ARM 6.6.3826 through 6.6.3828, or invests in securities that are determined by
				the commissioner to be substantively similar to the types of securities set out
				in ARM 6.6.3826 through 6.6.3828; or
(b) invests at least 90% of its assets in the
				types of equity interests that qualify as an investment under ARM
				6.6.3829.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3832 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - LETTERS OF CREDIT

Current through Register Vol. 13, July 5, 2024
(1) In order for a
				letter of credit to qualify as an asset of the trust, the trustee shall have
				the right and the obligation pursuant to the deed of trust or some other
				binding agreement (as duly approved by the commissioner), to immediately draw
				down the full amount of the letter of credit and hold the proceeds in trust for
				the beneficiaries of the trust if the letter of credit will otherwise expire
				without being renewed or replaced.
(2) The term of the letter of credit must be
				at least one year. The letter of credit must require notice of the expiration
				or nonrenewal date to the trustee no less than 30 days prior to the expiration
				or nonrenewal date.
(3) The failure
				of the trustee to draw against the letter of credit in circumstances where such
				draw would be required shall be deemed to be negligence and/or willful
				misconduct, for which the trustee is liable. Such liability must be stated in
				the trust agreement.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3833 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - APPLICATION OF SPECIFIC SECURITY

Current through Register Vol. 13, July 5, 2024
(1) A specific
				security provided to a ceding insurer by an assuming insurer pursuant to
				33-2-1216(6), MCA
				shall be applied, until exhausted, to the payment of liabilities of the
				assuming insurer to the ceding insurer holding the specific security prior to,
				and as a condition precedent for, presentation of a claim by the ceding insurer
				for payment by a trustee of a trust established by the assuming insurer
				pursuant 33-2-1216(5), MCA
				and applicable rules.
AUTH:
					 33-1-313,
					 33-2-1517, MCA IMP:
					 33-2-1216,
					 33-2-1217,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3842 - CERTIFICATION OF ASSUMING INSURERS - INITIAL CERTIFICATION PROCEDURE

Current through Register Vol. 13, July 5, 2024
(1) The assuming
				insurer must submit an Application for Credit for Reinsurance and a properly
				executed Form CR-1. The forms and directions are found on the web site
				maintained by the commissioner.
(2)
				The commissioner shall post notice on the department web site promptly upon
				receipt of any application for credit for reinsurance involving certification
				pursuant to
				33-2-1216(5)(e),
				MCA. The web site must include instructions on how members of the public may
				respond to the application. The commissioner may not take final action on the
				application until at least 30 days after posting the notice required by this
				paragraph.
(3) Upon the initial
				certification, the assuming insurer shall submit audited financial statements
				for the last three years filed with the assuming insurer's
				supervisor.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3843 - CERTIFICATION OF ASSUMING INSURERS - FILING REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) The assuming insurer must fulfill filing
				requirements as determined by the commissioner, both with respect to an initial
				application for certification and on an ongoing basis.
(2) All information submitted by assuming
				insurers which are not otherwise public information subject to disclosure shall
				be exempted from disclosure under
				33-2-406,
				MCA, and shall be withheld from public disclosure.
(3) The assuming insurer must provide to the
				commissioner the following:
(a) notification
				within 10 days of any regulatory actions taken against the assuming insurer,
				any change in the provisions of its domiciliary license or any change in rating
				by an approved rating agency, including a statement describing such changes and
				the reasons therefore;
(b)
				annually, Form CR-F or CR-S, as applicable. The forms are found on the web site
				maintained by the commissioner;
(c)
				upon the initial certification, audited financial statements for the last two
				years filed with the certified reinsurer's supervisor; thereafter, annually,
				reports of an independent auditor on the financial statements of the assuming
				insurer, the most recent audited financial statements regulatory filings, and
				actuarial opinions (as filed with the assuming insurer's supervisor, with a
				translation into English);
(d) at
				least annually, an updated list of all disputed and overdue reinsurance claims
				regarding reinsurance assumed from United States domestic ceding
				insurers;
(e) a certification from
				the assuming insurer's domestic regulator that the assuming insurer is in good
				standing and maintains capital in excess of the jurisdiction's highest
				regulatory action level; and
(f)
				any other information that the commissioner may require.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3844 - CERTIFICATION OF ASSUMING INSURERS - RECOGNITION OF CERTIFICATION ISSUED BY AN NAIC-ACCREDITED JURISDICTION

Current through Register Vol. 13, July 5, 2024
(1) An assuming
				insurer that has submitted a properly executed Form CR-1 and such additional
				information as the commissioner requires, may request that the commissioner
				consider the assuming insurer's certification in an NAIC-accredited
				jurisdiction.
(2) In the event that
				the commissioner certifies the assuming insurer based on the certification in
				an NAIC-accredited jurisdiction (hereinafter the other jurisdiction), the
				following apply:
(a) the certified reinsurer
				shall notify the commissioner of any change in its certification status or
				rating in the other jurisdiction within 10 days after receiving notice of the
				change;
(b) any change in the
				certified reinsurer's certification status in the other jurisdiction shall
				apply automatically in this state as of the date it takes effect in the other
				jurisdiction;
(c) the commissioner
				may withdraw recognition of the other jurisdiction's certification at any time,
				with written notice to the certified reinsurer; and
(d) unless the commissioner suspends or
				revokes the certified reinsurer's certification in accordance with ARM
				6.6.3846(1) and (2), the certified reinsurer's certification shall remain in
				good standing in this state for a period of three months, which shall be
				extended if additional time is necessary to consider the assuming insurer's
				application for certification in this state.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3845 - CERTIFICATION OF ASSUMING INSURERS - NOTICE OF CERTIFICATION

Current through Register Vol. 13, July 5, 2024
(1) The
				commissioner shall issue written notice to an assuming insurer that has made
				application and been approved as a certified reinsurer. The written notice
				shall include the rating assigned the certified reinsurer pursuant to this
				rule. The commissioner shall publish a list of all certified reinsurers and
				their ratings.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3846 - CERTIFIED ASSUMING INSURERS - CHANGE IN CERTIFICATION

Current through Register Vol. 13, July 5, 2024
(1) The
				commissioner has the authority to suspend, revoke, or otherwise modify a
				certified reinsurer's certification at any time if the certified reinsurer
				fails to meet its obligations or security requirements as stated in
				33-2-1216, MCA, and these rules,
				or if other financial or operating results of the certified reinsurer, or
				documented significant delays in payment by the certified reinsurer, lead the
				commissioner to reconsider the certified reinsurer's ability or willingness to
				meet its contractual obligations.
(2) Upon revocation of the certification of a
				certified reinsurer by the commissioner, the assuming insurer shall be required
				to post security to continue to take credit for reinsurance. The commissioner
				may allow additional credit equal to the ceding insurer's pro rata share of
				trust funds meeting the standards of
				33-2-1216,
				33-2-1217, MCA, and these rules,
				discounted to reflect the risk of uncollectibility and anticipated expenses of
				trust administration. Notwithstanding the change of a certified reinsurer's
				rating or revocation of its certification, a domestic insurer that has ceded
				reinsurance to that certified reinsurer may not be denied credit for
				reinsurance for a period of three months for all reinsurance ceded to that
				certified reinsurer, unless the reinsurance is found by the commissioner to be
				at high risk of uncollectibility.
(3) When an assuming insured has been
				certified by the commissioner pursuant to
				33-2-1216(5)(e),
				MCA, (based on certification in a qualified jurisdiction and NAIC
				certification) and the certification in the NAIC-accredited jurisdiction
				(hereinafter the other jurisdiction) changes, the provisions of ARM 6.6.3850
				apply.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3847 - CERTIFICATION OF ASSUMING INSURERS - MANDATORY FUNDING CLAUSE IN REINSURANCE CONTRACTS OR AGREEMENTS

Current through Register Vol. 13, July 5, 2024
(1) Insurance
				contracts entered into or renewed under the commissioner's authority to certify
				an assuming reinsurer shall include a proper funding clause, which requires the
				certified reinsurer to provide and maintain security in an amount sufficient to
				avoid the imposition of any financial statement penalty on the ceding
				insurer.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3848 - CERTIFIED REINSURERS - EFFECTIVE DATE OF CREDIT

Current through Register Vol. 13, July 5, 2024
(1) The credit
				allowed to a certified reinsurer pursuant to
				33-2-1216, MCA, and this rule
				shall apply only to reinsurance contracts entered into or renewed on or after
				the effective date of the certification of the assuming insurer. Reinsurance
				contracts entered into prior to the effective date of the certification of the
				assuming insurer can be applied prospectively to the effective date of the
				certification of the assuming insurer only with respect to losses incurred and
				reserves reported from and after the effective date of an amendment to the
				prior contract or the effective date of a new contract.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3860 - ASSUMING INSURER - DEFINITION OF OBLIGATIONS

Current through Register Vol. 13, July 5, 2024
(1) "Obligations,"
				as used in ARM 6.6.3861 through 6.6.3869, means:
(a) reinsured losses and allocated loss
				expenses paid by the ceding company, but not recovered from the assuming
				insurer;
(b) reserves for reinsured
				losses reported and outstanding;
(c) reserves for reinsured losses incurred
				but not reported; and
(d) reserves
				for allocated reinsured loss expenses and unearned premiums.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3861 - ASSUMING INSURER - VALUATION OF ASSETS

Current through Register Vol. 13, July 5, 2024
(1) Either the
				reinsurance agreement or the trust agreement relevant to
				33-2-1217, MCA, must stipulate
				that assets deposited in the trust account shall be valued according to their
				current fair market value and shall consist only of cash in United States
				dollars, certificates of deposit issued by a United States bank and payable in
				United States dollars, and investments permitted by Title 33, MCA, or any
				combination thereof, provided investments in or issued by an entity
				controlling, controlled by, or under common control with either the grantor or
				the beneficiary of the trust shall not exceed five percent of total
				investments. The agreement may further specify the types of investments to be
				deposited. If the reinsurance agreement covers life, annuities, or accident and
				health or disability risks, then the provisions required by this paragraph must
				be included in the reinsurance agreement.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1217,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3862 - ASSUMING INSURER - FINANCIAL REPORTING

Current through Register Vol. 13, July 5, 2024
(1) A trust
				agreement may be used to reduce any liability for reinsurance ceded to an
				unauthorized assuming insurer in financial statements required to be filed with
				the department in compliance with the provisions of this rule when established
				on or before the date of filing of the financial statement of the ceding
				insurer. Further, the reduction for the existence of an acceptable trust
				account must be equal to the current fair market value of acceptable assets
				available to be withdrawn from the trust account at that time, but such
				reduction shall be no greater than the specific obligations under the
				reinsurance agreement that the trust account was established to
				secure.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1217,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3864 - ASSUMING INSURER - RISKS OTHER THAN LIFE, ANNUITIES, ACCIDENT AND HEALTH OR DISABILITY - TRUST AGREEMENT PROVISIONS - PERMISSIVE

Current through Register Vol. 13, July 5, 2024
(1) When a trust
				agreement is established in conjunction with a reinsurance agreement pursuant
				to 33-2-1217, MCA, covering risks
				other than life, annuities, and accident and health or disability, the trust
				agreement may, notwithstanding any other conditions in this regulation, provide
				that the ceding insurer shall undertake to use and apply amounts drawn upon the
				trust account, without diminution because of the insolvency of the ceding
				insurer or the assuming insurer, for the following purposes:
(a) to pay or reimburse the ceding insurer
				for the assuming insurer's share under the specific reinsurance agreement
				regarding any losses and allocated loss expenses paid by the ceding insurer,
				but not recovered from the assuming insurer, or for unearned premiums due to
				the ceding insurer if not otherwise paid by the assuming insurer;
(b) to make payment to the assuming insurer
				of any amounts held in the trust account that exceed 102% of the actual amount
				required to fund the assuming insurer's obligations under the specific
				reinsurance agreement; or
(c) when
				the ceding insurer has received notification of termination of the trust
				account and when the assuming insurer's entire obligations under the specific
				reinsurance agreement remain unliquidated and undischarged 10 days prior to the
				termination date, to withdraw amounts equal to the obligations and deposit
				those amounts in a separate account in the name of the ceding insurer in any
				qualified United States financial institution as defined in
				33-2-1217, MCA, apart from its
				general assets, in trust for such uses and purposes specified in (a) and (b) as
				may remain executory after such withdrawal and for any period after the
				termination date.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3865 - ASSUMING INSURER - RISKS ASSOCIATED WITH LIFE, ANNUITIES, ACCIDENT AND HEALTH OR DISABILITY - TRUST AGREEMENT PROVISIONS - PERMISSIVE

Current through Register Vol. 13, July 5, 2024
(1) When a trust
				agreement is established in conjunction with a reinsurance agreement pursuant
				to 33-2-1217, MCA, covering risks
				associated with life, annuities, and accident and health or disability,
				notwithstanding any other conditions in this regulation, the trust agreement
				may provide that the ceding insurer shall undertake to use and apply amounts
				drawn upon the trust account, without diminution because of the insolvency of
				the ceding insurer or the assuming insurer, only for the following purposes:
(a) to pay or reimburse the ceding insurer
				for:
(i) the assuming insurer's share under
				the specific reinsurance agreement of premiums returned, but not yet recovered
				from the assuming insurer, to the owners of policies reinsured under the
				reinsurance agreement on account of cancellations of the policies;
				and
(ii) the assuming insurer's
				share under the specific reinsurance agreement of surrenders and benefits or
				losses paid by the ceding insurer, but not yet recovered from the assuming
				insurer, under the terms and provisions of the policies reinsured under the
				reinsurance agreement;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3866 - ASSUMING INSURER - TRUST AGREEMENT PROVISIONS - PERMISSIVE

Current through Register Vol. 13, July 5, 2024
(1) The trust
				agreement pursuant to
				33-2-1217, MCA, may include any or
				all of the following conditions:
(a) the
				trust agreement may provide that the trustee may resign upon delivery of a
				written notice of resignation, effective not less than 90 days after receipt by
				the beneficiary and grantor of the notice and that the trustee may be removed
				by the grantor by delivery to the trustee and the beneficiary of a written
				notice of removal, effective not less than 90 days after receipt by the trustee
				and the beneficiary of the notice, provided that no such resignation or removal
				shall be effective until a successor trustee has been duly appointed and
				approved by the beneficiary and the grantor and all assets in the trust have
				been duly transferred to the new trustee;
(b) the grantor may have the full and
				unqualified right to vote any shares of stock in the trust account and to
				receive from payments of any dividends or interest upon any shares of stock or
				obligations included in the trust account. Any such interest or dividends must
				be either forwarded promptly upon receipt to the grantor or deposited in a
				separate account established in the grantor's name;
(c) the trustee may be given authority to
				invest, and accept substitutions of, any funds in the account, provided that no
				investment or substitution may be made without prior approval of the
				beneficiary, unless the trust agreement specifies categories of investments
				acceptable to the beneficiary and authorizes the trustee to invest funds and to
				accept substitutions that the trustee determines are at least equal in current
				market value to the assets withdrawn and that are consistent with the
				restrictions of this rule;
(d) the
				trust agreement may provide that the beneficiary may at any time designate a
				party to which all or part of the trust assets are to be transferred. Such
				transfer may be conditioned upon the trustee receiving, prior to or
				simultaneously, other specified assets; and
(e) the trust agreement may provide that,
				upon termination of the trust account, all assets not previously withdrawn by
				the beneficiary must, with written approval by the beneficiary, be delivered
				over to the grantor.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3867 - REINSURANCE AGREEMENT PROVISIONS RELATING TO 1217 TRUST AGREEMENTS - PERMISSIVE

Current through Register Vol. 13, July 5, 2024
(1) Reinsurance
				agreements entered into in conjunction with trust agreements pursuant to
				33-2-1217, MCA, may include the
				following:
(a) a requirement that the assuming
				insurer enter into a trust agreement and establish a trust account for the
				benefit of the ceding insurer, and specifying what the agreement is to
				cover;
(b) a requirement that the
				assuming insurer, prior to depositing assets with the trustee, execute
				assignments or endorsements in blank, or to transfer legal title to the trustee
				of all shares, obligations, or any other assets requiring assignments, in order
				that the ceding insurer, or the trustee upon the direction of the ceding
				insurer, may, whenever necessary, negotiate these assets without consent or
				signature from the assuming insurer or any other entity;
(c) a requirement that all settlements of
				account between the ceding insurer and the assuming insurer be made in cash or
				its equivalent; and
(d) a
				requirement that the assuming insurer and the ceding insurer agree that the
				assets in the trust account, established pursuant to the provisions of the
				reinsurance agreement, may be withdrawn by the ceding insurer at any time,
				notwithstanding any other provisions in the reinsurance agreement, and must be
				utilized and applied by the ceding insurer or its successors in interest by
				operation of law, including without limitation any liquidator, rehabilitator,
				receiver, or conservator of such company, without diminution because of
				insolvency on the part of the ceding insurer or the assuming insurer, only for
				the following purposes:
(i) to reimburse the
				ceding insurer for the assuming insurer's share of premiums returned to the
				owners of policies reinsured under the reinsurance agreement because of
				cancellations of such policies;
(ii) to reimburse the ceding insurer for the
				assuming insurer's share of surrenders and benefits or losses paid by the
				ceding insurer pursuant to the provisions of the policies reinsured under the
				reinsurance agreement;
(iii) to pay
				or reimburse the ceding insurer any other amounts necessary to secure the
				credit or reduction from liability for reinsurance taken by the ceding insurer;
				and
(iv) to pay the assuming
				insurer amounts held in the trust account in excess of the amount necessary to
				secure the credit or reduction from liability for reinsurance taken by the
				ceding insurer.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3868 - TERMS AND CONDITIONS OF LETTERS OF CREDIT

Current through Register Vol. 13, July 5, 2024
(1) Applicable
				standards of acceptability for issuers of letters of credit under
				33-2-1217, MCA, include the
				following:
(a) the letter of credit must
				contain an issue date and date of expiration and must stipulate that the
				beneficiary need only draw a sight draft under the letter of credit and present
				it to obtain funds and that no other document need be presented;
(b) the letter of credit must indicate that
				it is not subject to any condition or qualifications outside of the letter of
				credit; and
(c) the letter of
				credit itself must not contain reference to any other agreements, documents, or
				entities.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3869 - REINSURANCE AGREEMENT PROVISIONS RELATING TO 1217 LETTERS OF CREDIT

Current through Register Vol. 13, July 5, 2024
(1) The reinsurance
				agreement entered into in conjunction with trust agreements pursuant to
				33-2-1217, MCA, may include the
				following:
(a) a requirement that the
				assuming insurer provide letters of credit to the ceding insurer and specify
				what they are to cover; and
(b) a
				requirement that the assuming insurer and ceding insurer agree that the letter
				of credit provided by the assuming insurer may be drawn upon at any time,
				notwithstanding any other provisions in the reinsurance agreement, and must be
				utilized and applied by the ceding insurer or its successors in interest by
				operation of law, including without limitation any liquidator, rehabilitator,
				receiver, or conservator of such company, without diminution because of
				insolvency on the part of the ceding insurer or the assuming insurer, only for
				the following purposes:
(i) to reimburse the
				ceding insurer for the assuming insurer's share of premiums returned to the
				owners of policies reinsured under the reinsurance agreement because of
				cancellations of such policies;
(ii) to reimburse the ceding insurer for the
				assuming insurer's share of surrenders and benefits or losses paid by the
				ceding insurer, but not yet recovered from the assuming insurers;
(iii) to pay or reimburse the ceding insurer
				any other amounts necessary to secure the credit or reduction from liability
				for reinsurance taken by the ceding insurer; and
(iv) when the letter of credit will expire
				without renewal or be reduced or replaced by a letter of credit for a reduced
				amount and where the assuming insurer's entire obligations under the
				reinsurance agreement remain unliquidated and undischarged 10 days prior to the
				termination date, to withdraw amounts equal to the assuming insurer's share of
				the liabilities, to the extent that the liabilities have not yet been funded by
				the assuming insurer and exceed the amount of any reduced or replacement letter
				of credit, and deposit those amounts in a separate account in the name of the
				ceding insurer in a qualified U.S. financial institution apart from its general
				assets, in trust for such uses and purposes specified in this rule as may
				remain after withdrawal and for any period after the termination
				date.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.39 - Letters of Credit Used in Reduction of Liability for Reinsurance Ceded › Rule 6.6.3901 - DEFINITIONS (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.39 - Letters of Credit Used in Reduction of Liability for Reinsurance Ceded › Rule 6.6.3902 - TERMS AND CONDITIONS OF LETTER OF CREDIT (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1217,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.39 - Letters of Credit Used in Reduction of Liability for Reinsurance Ceded › Rule 6.6.3903 - LIMITS ON USE OF LETTER OF CREDIT TO REDUCE LIABILITY (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1217,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.39 - Letters of Credit Used in Reduction of Liability for Reinsurance Ceded › Rule 6.6.3904 - OTHER SECURITY FOR PAYMENT OF OBLIGATIONS UNDER CONTRACT (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.39 - Letters of Credit Used in Reduction of Liability for Reinsurance Ceded › Rule 6.6.3905 - REINSURANCE CONTRACTS AS SECURITY (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 33-2-1217,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.39 - Letters of Credit Used in Reduction of Liability for Reinsurance Ceded › Rule 6.6.3906 - CONTRACTS AFFECTED (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 33-2-1217,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.39 - Letters of Credit Used in Reduction of Liability for Reinsurance Ceded › Rule 6.6.3907 - FORM FOR SUBMITTING TO STATE AUTHORITY AND JURISDICTION (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1216,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.40 - Insurer Investments › Rule 6.6.4001 - VALUATION OF SECURITIES OTHER THAN THOSE SPECIFICALLY REFERRED TO IN STATUTES

Current through Register Vol. 13, July 5, 2024
(1) Securities and
				assets must be valued in accordance with valuation standards of the NAIC
				published in its 1999 Accounting Practices and Procedures manual and its
				December 31, 1999 Valuation of Securities manual.
(2) The department hereby adopts and
				incorporates herein by reference the standards adopted by the NAIC for
				valuation of securities and other investments appearing in its 1999 Accounting
				Practices and Procedures manual and its December 31, 1999 Valuation of
				Securities manual. These are nationally-recognized models for such standards.
				Copies of the manuals are available for inspection at the office of the
				Commissioner of Insurance, 840 Helena Ave., Helena, Montana 59601. Copies of
				the Accounting Practices and Procedures manual and the Valuation of Securities
				manual may be obtained by writing to the National Association of Insurance
				Commissioners, 120 West 12th Street, Suite 1100, Kansas City, MO 64105-1925.
				Persons obtaining copies of such manuals may be required to pay the NAIC's
				costs of providing such copies.
Sec.
					 33-1-313,
					 33-2-533, and
					 33-2-1517, MCA; IMP, Sec.
					 33-2-533 and
					 33-2-1517;
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.40 - Insurer Investments › Rule 6.6.4002 - DEFINITIONS OF MONEY MARKET FUNDS

Current through Register Vol. 13, July 5, 2024
(1) For the
				purposes of implementing
				33-4-403, MCA, the commissioner
				defines "money market funds" as those investments which comply with the
				standards of the United States securities and exchange commission adopted in
				17 C.F.R.
				270.2a-7, as it appears in the April 1, 1997,
				edition of the Code of Federal Regulations.
(2) The commissioner hereby adopts and
				incorporates herein by reference
				17 C.F.R.
				270.2a-7, as it appears in the April 1, 1997,
				edition of the Code of Federal Regulations. A copy of the complete regulation
				is available for inspection at the office of the Commissioner of Insurance,
				Room 270, Sam W. Mitchell Building, Helena, Montana. Copies of the regulation
				may also be obtained by writing to United States Securities and Exchange
				Commission Regional Office, 3040 Jackson Federal Building, 915 Second Avenue,
				Seattle, Washington 98174. Persons obtaining such copies may be required to pay
				the costs of providing such copies.
Sec.
					 33-1-313 and
					 33-4-403, MCA; IMP, Sec.
					 33-2-806,
					 33-4-403, and
					 33-4-404,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.40 - Insurer Investments › Rule 6.6.4020 - PURPOSE

Current through Register Vol. 13, July 5, 2024
(1) The purpose of these rules is to
				establish standards for the prudent use of derivative instruments by insurers
				in accordance with Title 33, chapter 12, MCA, regarding insurer
				investments.
33-1-313,
					 33-12-111, MCA; IMP,
					 33-12-210,
					 33-12-310,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.40 - Insurer Investments › Rule 6.6.4021 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
(1) The words and phrases used in these rules
				have the same meaning as in
				33-12-102, MCA, unless a different
				meaning is required by the context of the particular rule.
33-1-313,
					 33-12-111, MCA; IMP,
					 33-12-210,
					 33-12-310,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.40 - Insurer Investments › Rule 6.6.4022 - GUIDELINES AND INTERNAL CONTROL PROCEDURES

Current through Register Vol. 13, July 5, 2024
(1)
				Before engaging in a derivative transaction, an insurer shall establish written
				guidelines, approved by the commissioner, that shall be used for effecting and
				maintaining derivative transactions. The guidelines shall:
(a) specify the insurer's objectives for
				engaging in derivative transactions, derivative strategies, and all applicable
				risk constraints, including credit risk limits;
(b) establish counterparty exposure limits
				and credit equity standards;
(c)
				identify permissible derivative transactions and the relationship of those
				transactions to insurer operations; for example, a precise identification of
				the risks being hedged by a derivative transaction; and
(d) require compliance with internal control
				procedures.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.40 - Insurer Investments › Rule 6.6.4023 - COMMISSIONER APPROVAL

Current through Register Vol. 13, July 5, 2024
(1) Written
				documentation explaining the insurer's internal guidelines and controls
				governing derivative transactions shall be submitted for approval to the
				commissioner. The commissioner shall have the authority to disapprove the
				guidelines and controls proposed by the insurer if the insurer cannot
				demonstrate the proposed internal guidelines and controls would be adequate to
				manage the risks associated with the derivative transactions the insurer
				intends to engage in.
33-1-313,
					 33-12-111, MCA; IMP,
					 33-12-210,
					 33-12-310,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.40 - Insurer Investments › Rule 6.6.4025 - INSURER DOCUMENTATION REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1)
				An insurer shall maintain documents and records relating to each derivative
				transaction, including:
(a) the purpose of
				the transaction;
(b) the assets or
				liabilities to which the transaction relates;
(c) the specific derivative instrument used
				in the transaction;
(d) for
				over-the-counter derivative instrument transactions, the name of the
				counterparty and the market value; and
(e) for exchange traded derivative
				instruments, the name of the exchange and the name of the firm that handled the
				trade and the market value.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.40 - Insurer Investments › Rule 6.6.4027 - TRADING REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) Each derivative
				instrument shall be:
(a) traded on a
				qualified exchange;
(b) entered
				into with, or guaranteed by, a business entity;
(c) issued or written with the issuer of the
				underlying interest on which the derivative instrument is based; or
(d) entered into with a qualified foreign
				exchange.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.41 - Fee Schedules › Rule 6.6.4101 - ACCREDITATION FEES (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 33-1-313,
					 33-2-708, MCA ;IMP:
					 33-2-708,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.41 - Fee Schedules › Rule 6.6.4102 - CONTINUING EDUCATION FEES

Current through Register Vol. 13, July 5, 2024
(1) Accredited
				educational institutions are exempt from fee requirements for courses provided
				for academic credit.
Sec.
					 33-1-313,
					 33-2-708, and
					 33-17-1206, MCA; IMP, Sec.
					 33-2-708,
					 33-17-1204,
					 33-17-1205, and
					 33-17-1207,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.42 - Continuing Education Program for Insurance Producers and Consultants › Rule 6.6.4201 - SCOPE OF RULES

Current through Register Vol. 13, July 5, 2024
(1) These rules
				apply to continuing education programs for insurance producers, adjuster, and
				consultants, and include course content, qualifications of instructors,
				instructional format, courses and materials, review and approval procedures,
				application forms, and fees.
33-1-313,
					 33-17-1206, MCA; IMP,
					 33-17-1203,
					 33-17-1204,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.42 - Continuing Education Program for Insurance Producers and Consultants › Rule 6.6.4202 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For the purposes of this subchapter, the following terms have
				  the following meanings:
(1)
				"Accredited university or college" means an institution of higher learning that
				is certified by its appropriate accrediting agency to meet that agency's
				prescribed standards.
(2) "Approved
				continuing education course" means any course, seminar or program of
				instruction that has been approved by the commissioner for presentation as part
				of the continuing education requirements for licensees.
(3) "Biennial cycle" means the 24-month
				period in which required continuing education must be completed. An initial
				cycle may be longer than 24 months.
(4) "Classroom setting" means a course format
				in which a body of students meets to study the same course materials under the
				direction of the same approved instructor.
(5) "Credit hours" means the value assigned
				to a course by the commissioner, upon review and approval of course materials
				and content outline.
(6)
				"Instructor" means an individual who meets the requirements set forth in ARM
				6.6.4204, is identified by a
				sponsoring organization in a course submission, participates in course
				presentations, activities and discussions, and who may monitor the attendance
				and conduct of course participants or administer examinations.
(7) "Licensee" means an individual required
				to be licensed under Title 33, chapter 17, parts 2, 3, 4, or 5, MCA.
(8) "SBS" means the electronics system owned
				by the NAIC and enhanced in partnership with state insurance departments that
				provides a comprehensive, web-based application for use by state
				regulators.
(9) "Significant
				change" means a change in two or more of the following course elements:
(a) course goals or objectives;
(b) major course topic(s);
(c) course length;
(d) syllabus or course outline;
(e) teaching method, or
(f) examination method.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.42 - Continuing Education Program for Insurance Producers and Consultants › Rule 6.6.4203 - COURSE SUBMISSIONS

Current through Register Vol. 13, July 5, 2024
(1) Except as
				provided in (14) and ARM
				6.6.4213, the following standards,
				by which acceptability of submitted courses should be evaluated, must all be
				certified by the sponsoring organization:
(a)
				the practical and academic experience of each faculty member is sufficient to
				teach the subject assigned;
(b) the
				course enhances the ability of a licensee to provide insurance services to the
				public effectively;
(c) the subject
				matter relates to professional ethics, where practicable.