reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.17 - Trust Agreement Established in Conjunction with Reinsurance Contracts Covering Risks Other than Life, Annuities, and Accident and Health

Current through Register Vol. 51, No. 14, July 12, 2024
A. Use of Amounts Drawn on Trust Account. Notwithstanding any provision of Regulation .15 of this chapter, when a trust agreement is established to meet the requirements of Regulation .14 of this chapter in conjunction with a reinsurance contract covering risks other than life, annuities, or accident and health, where it is customary practice to provide a trust agreement for a specific purpose, the trust agreement may allow the ceding insurer to use amounts drawn on the trust account, without diminution because of the insolvency of the ceding insurer or the assuming insurer, for the purposes listed in this regulation.
B. To Pay or Reimburse Ceding Insurer. A trust agreement may allow the ceding insurer to use amounts drawn on the trust account to pay or reimburse the ceding insurer for:
(1) The assuming insurer's share under the specific reinsurance contract regarding any losses and loss adjustment expenses paid by the ceding insurer but not recovered from the assuming insurer; and
(2) Unearned premiums due to the ceding insurer if not otherwise paid by the assuming insurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.18 - Trust Agreement Established in Conjunction with Reinsurance Contracts Covering Life, Annuities, or Accident and Health Risks

Current through Register Vol. 51, No. 14, July 12, 2024
A. Use of Amounts Drawn on Trust Account. Notwithstanding any provision of Regulation .15 of this chapter, when a trust agreement is established to meet the requirements of Regulation .14 of this chapter in conjunction with a reinsurance contract covering life, annuities, or accident and health risks, where it is customary to provide a trust agreement for a specific purpose, the trust agreement may allow the ceding insurer to use amounts drawn on the trust account, without diminution because of the insolvency of the ceding insurer or the assuming insurer, for the purposes listed in this regulation.
B. To Pay or Reimburse Ceding Insurer. A trust agreement may allow the ceding insurer to use amounts drawn on the trust account to pay or reimburse the ceding insurer for the assuming insurer's share under the:
(1) Reinsurance contract of premiums returned, but not yet recovered from the assuming insurer, to the owners of policies reinsured under the insurance contract on account of cancellations of the policies; and
(2) Specific reinsurance contract 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 contract.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.19 - Permitted Conditions Applicable to Reinsurance Contracts

Current through Register Vol. 51, No. 14, July 12, 2024
A. Trust Agreement. A reinsurance contract may:
(1) Require the assuming insurer to enter into a trust agreement;
(2) Establish a trust account for the benefit of the ceding insurer; and
(3) Specify what the agreement is to cover.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.20 - Financial Reporting

Current through Register Vol. 51, No. 14, July 12, 2024
A. Reduction of Liability. A ceding insurer may use a trust agreement to reduce any liability for reinsurance ceded to an unauthorized assuming insurer in financial statements required to be filed with the Commissioner in compliance with this chapter when the trust agreement is established on or before the date of filing of the financial statement of the ceding insurer.
B. Amount of Reduction. A reduction for the existence of an acceptable trust account may be up to the current fair market value of acceptable assets available to be withdrawn from the trust account at that time, but the reduction may not exceed the specific obligations under the reinsurance contract that the trust account was established to secure.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.21 - Existing Agreements

Current through Register Vol. 51, No. 14, July 12, 2024
A trust agreement or underlying reinsurance agreement that is in existence before the effective date of this chapter will continue to be acceptable until December 31, 2006, after which time the agreement shall comply fully with this chapter for the trust agreement to be acceptable.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.22 - Other Security

Current through Register Vol. 51, No. 14, July 12, 2024
A ceding insurer may take credit for unencumbered funds that are:
A. Withheld by the ceding insurer in the United States;
B. Subject to withdrawal solely by the ceding insurer; and
C. Under the exclusive control of the ceding insurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.23 - Reinsurance Contract

Current through Register Vol. 51, No. 14, July 12, 2024
Credit for reinsurance may not be allowed by the Commissioner as an admitted asset or deduction from liability to any ceding insurer for a reinsurance contract entered into with a reinsurer under this chapter after the adoption of this regulation unless the reinsurance contract includes:
A. An insolvency clause, in accordance with Insurance Article, §
									5-905(a), Annotated Code of Maryland; and
B. A provision under which the reinsurer, if an unauthorized reinsurer, has:
(1) Submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States;
(2) Agreed to comply with all requirements necessary to give the court or panel jurisdiction;
(3) Designated an agent to receive service of process; and
(4) Agreed to abide by the final decision of the court or panel.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.25 - Change in Certification Rating or Suspension or Revocation of Certification

Current through Register Vol. 51, No. 14, July 12, 2024
A. Change in Certification Rating.
(1) In the case of a downgrade of a financial strength rating by a rating agency, or other change in circumstance, the Commissioner shall upon written notice to the certified reinsurer assign a new certification rating to the certified reinsurer in accordance with the requirements of Regulation .24 of this chapter.If the Commissioner downgrades the certified reinsurer's certification rating, the certified reinsurer shall meet the security requirements applicable to its new certification rating for all business it has assumed as a certified reinsurer.
(2) If the Commissioner upgrades a certified reinsurer's certification rating, the certified reinsurer may meet the security requirements applicable to its new rating on a prospective basis, but the Commissioner shall require the certified reinsurer to post security under the previously applicable security requirements as to all contracts in force on or before the effective date of the upgraded rating.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.26 - Qualified Jurisdictions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Eligibility.
(1) The Commissioner shall maintain and publish a list of qualified jurisdictions under which an assuming insurer, licensed and domiciled in that jurisdiction, is eligible to be considered for certification by the Commissioner as a certified reinsurer.
(2) In order to determine whether the domiciliary jurisdiction of a non-U.S. assuming insurer is eligible to be recognized as a qualified jurisdiction, the Commissioner shall:
(a) Evaluate the reinsurance supervisory system of the non-U.S. jurisdiction, both initially and on an ongoing basis;
(b) Consider the rights, benefits and extent of reciprocal recognition afforded by a non-U.S. jurisdiction to reinsurers licensed and domiciled in the U.S.; and
(c) Consider any additional factors that the Commissioner deems appropriate, which may include:
(i) The framework under which the assuming insurer is regulated;
(ii) The structure and authority of the domiciliary regulator with regard to solvency regulation requirements and financial surveillance;
(iii) The substance of financial and operating standards for assuming insurers in the domiciliary jurisdiction;
(iv) The form and substance of financial reports required to be filed or made publicly available by reinsurers in the domiciliary jurisdiction and the accounting principles used for purposes of those reports;
(v) The domiciliary regulator's cooperation with U.S. regulators, including the Commissioner;
(vi) The history of performance by assuming insurers in the domiciliary jurisdiction;
(vii) Any relevant international standards or guidance with respect to mutual recognition of reinsurance supervision adopted by the International Association of Insurance Supervisors or successor organization; and
(viii) Any other matters deemed relevant by the Commissioner.
(3) The Commissioner may not recognize a jurisdiction as a qualified jurisdiction unless the Commissioner has determined that the jurisdiction adequately and promptly enforces final U.S. judgments or arbitration awards.
(4) A qualified jurisdiction shall agree in writing to share information and cooperate with the Commissioner with respect to all certified reinsurers domiciled within that jurisdiction.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.27 - Mandatory Funding Clause

Current through Register Vol. 51, No. 14, July 12, 2024
In addition to the requirements of Regulations .14-.18 of this chapter, reinsurance contracts entered into or renewed under Regulations .24-.26 of this chapter shall include a funding clause, which requires the certified reinsurer to provide and maintain security in an amount sufficient to avoid the imposition of any unfavorable financial statement accounting treatment on the ceding insurer under this chapter for reinsurance ceded to the certified reinsurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.08 - Credit for Reinsurance › Section 31.05.08.28 - Credit for Reinsurance -Reciprocal Jurisdictions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Pursuant to Insurance Article, §
									5-917, Annotated Code of Maryland, the Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is licensed to write reinsurance by, and has its head office or is domiciled in, a reciprocal jurisdiction, and which meets the other requirements of this regulation.
B. A "reciprocal jurisdiction" means a jurisdiction, as designated by the Commissioner pursuant to §D of this regulation that is:
(1) A non-U.S. jurisdiction that is subject to an in-force covered agreement with the U.S., each within its legal authority, or, in the case of a covered agreement between the U.S. and the European Union, is a member state of the European Union. For purposes of this section, a "covered agreement" is an agreement:
(a) Entered into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, 31 U.S.C. §§
												313 and 314; and
(b) Currently in effect or in a period of provisional application and addresses the elimination, under specified conditions, of collateral requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this State or for allowing the ceding insurer to recognize credit for reinsurance;
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.09 - Mortgage Loans › Section 31.05.09.01 - Information To Be Filed

Current through Register Vol. 51, No. 14, July 12, 2024
All companies shall have the following information filed with each mortgage, and kept ready for convenient inspection by examiners from this Administration:
A. The mortgage note and deed, and all assignments of them, properly recorded;
B. A detailed appraisal of the property securing the mortgage, made by a disinterested, unaffiliated appraiser, with the appraiser's qualifications attached; an appraisal made by any competent licensed real estate operator with a short statement of the licensed real estate operator's experience is sufficient; and
C. One of the following:
(1) A title insurance policy,
(2) An abstract of title to the property made by a qualified attorney and certified by him,
(3) A certificate of title from the attorney making the title examination;
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.09 - Mortgage Loans › Section 31.05.09.02 - Required Procedure

Current through Register Vol. 51, No. 14, July 12, 2024
An insurance company that is a party to a mortgage loan participation agreement shall have the items listed in Regulation .01A and B of this chapter in its possession. The insurer may have the lending institution certify annually that the items listed in Regulation .01C, D, and E of this chapter are in force or have been paid.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.10 - Financial Guaranty Insurance › Section 31.05.10.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) Asset-Backed Security.
(a) "Asset-backed security" has the meaning stated in Insurance Article, §
											5-511(a)(3), Annotated Code of Maryland.
(b) "Asset-backed security" includes a pool of credit default swaps or credit default swaps referencing a pool of obligations if:
(i) The swap counterparty whose obligations are insured under the credit default swap is a special purpose corporation, special purpose trust, or other special purpose legal entity;
(ii) No reference obligation in the pool, other than an obligation directly payable by, guaranteed by, or backed by the full faith and credit of the United States government or that otherwise qualifies as collateral under regulations adopted by the Commissioner under this chapter, has a notional amount exceeding 10 percent of the pool's aggregate notional amount; and
(iii) The insurer has the benefit of a deductible or other first credit protection against claims under its insurance policy.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.10 - Financial Guaranty Insurance › Section 31.05.10.02 - Contingency Reserve Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General.
(1) In addition to the unearned premium reserve and the liability established for unpaid losses and loss adjustment expenses, a financial guaranty insurer shall maintain a contingency reserve.
(2) The purpose of the contingency reserve is to protect policyholders against loss during periods of extreme economic contraction.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.10 - Financial Guaranty Insurance › Section 31.05.10.03 - Scope of Certificate of Authority

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General.
(1) A financial guaranty insurer that holds a certificate of authority for the purpose of transacting financial guaranty insurance may write financial guaranty insurance to insure debt instruments and other monetary obligations only in the following categories:
(a) Municipal obligation bonds;
(b) Special revenue bonds;
(c) Industrial development bonds;
(d) Corporate obligations;
(e) Limited partnership obligations;
(f) Asset-backed securities, trust certificates, and trust obligations other than mortgage-backed securities secured by first mortgages on real property that are insurable by a mortgage guaranty insurer, unless:
(i) The mortgages with loan-to-value ratios in excess of 80 percent are insured by mortgage guaranty insurers; or
(ii) Additional mortgages with principal balances, other collateral with a market value, or, if the insured risk is investment grade, excess spread in an amount, in each instance at least equal to the coverage that would otherwise be provided by the mortgage guaranty insurers in accordance with this subsection, are pledged as additional security for the asset-backed securities;
(g) Installment purchase agreements executed as a condition of sale;
(h) Subject to §A(2) of this regulation, consumer debt obligations;
(i) Utility first mortgage obligations; and
(j) Any other debt instrument or monetary obligation that the Commissioner determines to be substantially similar to any of the items listed in §A(1)(a)-(i) of this regulation.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.10 - Financial Guaranty Insurance › Section 31.05.10.04 - Credit Risk Exposure Limits

Current through Register Vol. 51, No. 14, July 12, 2024
A. A financial guaranty insurer's outstanding total liability for municipal obligation bonds, special revenue bonds, and industrial development bonds shall be investment grade to the following extent:
(1) For financial guaranty insurers rated AAA by a nationally recognized statistical rating organization, at least 95 percent;
(2) For financial guaranty insurers rated AA by a nationally recognized statistical rating organization, at least 85 percent; and
(3) For financial guaranty insurers rated A by a nationally recognized statistical rating organization, at least 70 percent.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.10 - Financial Guaranty Insurance › Section 31.05.10.05 - Aggregate Risk Limits

Current through Register Vol. 51, No. 14, July 12, 2024
A. A financial guaranty insurer shall at all times maintain capital, surplus, and contingency reserve in the aggregate not less than the sum of:
(1) 0.3333 percent or 1/300th of the total liability under guaranties of municipal obligation bonds and special revenue bonds, including obligations demonstrated to the satisfaction of the Commissioner to be the functional equivalent of municipal obligation bonds or special revenue bonds, and investment grade utility first mortgage obligations; plus
(2) 0.6666 percent or 1/150th of the total liability under guaranties of investment grade asset-backed securities; plus
(3) 1.0 percent or 1/100th of the total liability under guaranties, to the extent secured by collateral or having a term of 7 years or less, of:
(a) Investment grade industrial development bonds; or
(b) Other investment grade obligations; plus
(4) 1.5 percent or 1/66.67th of the total liability under guaranties of other investment grade obligations; plus
(5) 2.0 percent or 1/50th of the total liability under guaranties of:
(a) Non-investment grade consumer debt obligations; and
(b) Non-investment grade asset-backed securities; plus
(6) 2.5 percent or 1/40th of the total liability under guaranties of non-investment grade obligations to the extent secured by first mortgages on commercial real estate and having loan-to-value ratios of 80 percent or less; plus
(7) 4.0 percent or 1/25th of the total liability under guaranties of other non-investment grade obligations.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.10 - Financial Guaranty Insurance › Section 31.05.10.06 - Single Risk Limits

Current through Register Vol. 51, No. 14, July 12, 2024
A financial guaranty insurer doing business in this State shall limit its exposure to loss, net of collateral and reinsurance, as follows:
A. For municipal obligation bonds, special revenue bonds, and obligations demonstrated to the satisfaction of the Commissioner to be the functional equivalent of municipal obligation bonds or special revenue bonds:
(1) The insured average annual debt service with respect to any one entity and backed by a single revenue source may not exceed 10 percent of the aggregate of the corporation's capital, surplus, and contingency reserve; and
(2) The insured unpaid principal issued by a single entity and backed by a single revenue source may not exceed 75 percent of the aggregate of the corporation's capital, surplus, and contingency reserve;
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.10 - Financial Guaranty Insurance › Section 31.05.10.07 - Insurers That Exceed Limitations

Current through Register Vol. 51, No. 14, July 12, 2024
A. Submission of Written Plan. Except as provided in §C of this regulation, if a financial guaranty insurer at any time exceeds any limitation prescribed by Regulation .03 or .04-.06 of this chapter, the financial guaranty insurer shall, within 30 days after the limitation is exceeded, submit a written plan to the Commissioner detailing the steps that the financial guaranty insurer will take or has taken to reduce its exposure to loss to not more than the permitted amounts.
B. Notice and Hearing; Order. If, after notice and hearing, the Commissioner determines that a financial guaranty insurer has exceeded any limitation prescribed by Regulation .03 or .04-.06 of this chapter, the Commissioner may order the financial guaranty insurer to:
(1) Cease transacting any new financial guaranty insurance business until the financial guaranty insurer's exposure to loss no longer exceeds the limitations; or
(2) Limit its writing to investment grade obligations until such time as it is in compliance with the limitations.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.10 - Financial Guaranty Insurance › Section 31.05.10.08 - Collateral

Current through Register Vol. 51, No. 14, July 12, 2024
Collateral shall be:
A. Deposited with the financial guaranty insurer;
B. Held in trust by a trustee or custodian acceptable to the Commissioner for the benefit of the financial guaranty insurer; or
C. Held in trust pursuant to the bond indenture or other trust arrangement for the benefit of security holders in the form of funds for the payment of insured obligations, sinking funds, or other reserves that may be used to pay the insured obligations and trustee and other administrative fees on a first priority basis established and continually maintained pursuant to the bond indenture or other trust arrangement by a trustee acceptable to the Commissioner.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.01 - Purpose and Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. Purpose. The purpose of this chapter is to improve the Maryland Insurance Administration's surveillance of the financial condition of insurers by requiring:
(1) An annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants;
(2) Communication of Internal Control Related Matters Noted in an Audit; and
(3) Management's Report on Internal Control over Financial Reporting.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Accountant" or "independent certified public accountant" means:
(a) An independent certified public accountant or accounting firm in good standing with the American Institute of Certified Public Accountants (AICPA) and in all states in which the accountant is licensed to practice; and
(b) For a Canadian or a British company, a Canadian-chartered or British-chartered accountant.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.03 - Filing and Extensions for Filing Audited Financial Reports; Audit Committee Appointment

Current through Register Vol. 51, No. 14, July 12, 2024
A. Insurers shall have an annual audit by an independent certified public accountant, and shall file an audited financial report with the Commissioner for the year ended December 31 immediately preceding, for:
(1) Nonprofit health service plans, on or before March 1 of each year;
(2) Dental plan organizations, on or before April 1 of each year;
(3) Health maintenance organizations, on or before June 1 of each year, or if approved by the Commissioner, within 150 days after the date their fiscal year ends; and
(4) All other insurers, on or before June 1 of each year.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.04 - Contents of Annual Audited Financial Report

Current through Register Vol. 51, No. 14, July 12, 2024
A. The annual audited financial report shall report the financial position of the insurer as of the end of the most recently ended calendar year and the results of its operations, cash flows, and changes in capital and surplus for the year then ended in conformity with statutory accounting practices prescribed, or otherwise permitted, by the department of insurance of the state of domicile.
B. The annual audited financial report shall include the following:
(1) Report of independent certified public accountant;
(2) Balance sheet reporting admitted assets, liabilities, capital, and surplus;
(3) Statement of operations;
(4) Statement of cash flow;
(5) Statement of changes in capital and surplus; and
(6) Notes to financial statements, which shall:
(a) Be those required by the appropriate NAIC Annual Statement Instructions and the NAIC Accounting Practices and Procedures Manual; and
(b) Include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed with the Commissioner, with a written description of the nature of these differences.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.05 - Designation of Independent Certified Public Accountant

Current through Register Vol. 51, No. 14, July 12, 2024
A. An insurer required by this chapter to file an annual audited financial report shall, within 60 days after becoming subject to the requirement:
(1) Register with the Commissioner in writing the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit set forth in this regulation; or
(2) Register the name and address of their retained independent certified public accountant not less than 6 months before the date when the first audited financial report is to be filed if the insurer has not retained an independent certified public accountant on the effective date of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.06 - Qualifications of Independent Certified Public Accountant

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Commissioner may not recognize a person or firm as a qualified independent certified public accountant if the person or firm:
(1) Is not in good standing with the American Institute of Certified Public Accountants (AICPA) and in all states in which the accountant is licensed to practice, or, for a Canadian or British company, that is not a chartered accountant; or
(2) Has either directly or indirectly entered into an agreement of indemnity or release from liability, collectively referred to as indemnification, with respect to the audit of the insurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.07 - Consolidated or Combined Audits

Current through Register Vol. 51, No. 14, July 12, 2024
A. An insurer may make written application to the Commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies that utilizes a pooling or 100 percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves, and the insurer cedes all of its direct and assumed business to the pool.
B. When an insurer makes a written application as allowed by §A of this regulation, a columnar consolidating or combining worksheet shall be filed with the report, as follows:
(1) Amounts shown on the consolidated or combined audited financial report shall be shown on the worksheet;
(2) Amounts for each insurer subject to this section shall be stated separately;
(3) Noninsurance operations may be shown on the worksheet on a combined or individual basis;
(4) Explanations of consolidating and eliminating entries shall be included; and
(5) A reconciliation shall be included of any differences between the amounts shown in the individual insurer columns of the worksheet and comparable amounts shown on the annual statements of the insurers.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.08 - Scope of Audit and Report of Independent Certified Public Accountant

Current through Register Vol. 51, No. 14, July 12, 2024
A. Financial statements furnished pursuant to Regulation .04 of this chapter shall be examined by the independent certified public accountant. The audit of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards.
B. The independent certified public accountant shall obtain an understanding of internal control sufficient to plan the audit in accordance with AU Section 319 of the Professional Standards of the AICPA, Consideration of Internal Control in a Financial Statement Audit.
C. To the extent required by AU 319, for those insurers required to file a Management's Report of Internal Control over Financial Reporting pursuant to Regulation .16 of this chapter, the independent certified public accountant should consider, as that term is defined in Statement on Auditing Standards (SAS) No. 102, Defining Professional Requirements in Statements on Auditing Standards or its replacement, the most recently available report in planning and performing the audit of the statutory financial statements.
D. The independent certified public accountant shall give consideration as he deems necessary to the procedures illustrated in the Financial Condition Examiners Handbook promulgated by the NAIC.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.09 - Notification of Adverse Financial Condition

Current through Register Vol. 51, No. 14, July 12, 2024
A. The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within 5 business days to the board of directors or its audit committee any determination by the independent certified public accountant that the insurer has materially misstated its financial condition as reported to the Commissioner as of the balance sheet date currently under audit, or that the insurer does not meet the minimum capital and surplus requirement of Insurance Article, Annotated Code of Maryland, as of that date.
B. An insurer that has received a report pursuant to §A of this regulation shall forward a copy of the report to the Commissioner within 5 business days of receipt of the report and shall provide the independent certified public accountant making the report with evidence of the report being furnished to the Commissioner.
C. If the independent certified public accountant fails to receive the evidence within the required 5 business day period, the independent certified public accountant shall furnish to the Commissioner a copy of its report within the next 5 business days.
D. An independent certified public accountant is not liable in any manner to any person for any statement made in connection with §A, B, or C of this regulation, if the statement is made in good faith in compliance with those sections.
E. If an accountant, subsequent to the date of the audited financial report filed pursuant to this chapter, becomes aware of facts that might have affected the accountant's report, the Commissioner notes the obligation of the accountant to take such action as prescribed in Volume 1, Section AU 561 of the Professional Standards of the AICPA.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.10 - Communication of Internal Control Related Matters Noted in an Audit

Current through Register Vol. 51, No. 14, July 12, 2024
A. In addition to the annual audited financial report, each insurer shall furnish the Commissioner with a written communication as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit.
B. The communication in §A of this regulation, shall be prepared by the accountant within 60 days after the filing of the annual audited financial report, and shall contain a description of any unremediated material weakness, as the term material weakness is defined by Statement on Auditing Standard 60, Communication of Internal Control Related Matters Noted in an Audit, or its replacement, as of the immediately preceding December 31, so as to coincide with the audited financial report discussed in Regulation .03A of this chapter in the insurer's internal control over financial reporting noted by the accountant during the course of their audit of the financial statements.
C. If no unremediated material weaknesses were noted, the communication from §A shall so state.
D. The insurer shall provide a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant's communication.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.11 - Accountant's Letter of Qualifications

Current through Register Vol. 51, No. 14, July 12, 2024
A. The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter as provided in §B of this regulation.
B. The letter shall state:
(1) That the accountant is independent with respect to the insurer, and conforms to the standards of the accountant's profession as contained in:
(a) The Code of Professional Ethics and pronouncements of the AICPA; and
(b) The rules of professional conduct of the Maryland Board of Public Accountancy or similar code;
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.12 - Definition, Availability, and Maintenance of Independent Certified Public Accountant's Workpapers

Current through Register Vol. 51, No. 14, July 12, 2024
A. An insurer required to file an audited financial report pursuant to this chapter shall require the accountant to make available for review by the Maryland Insurance Administration examiners, all workpapers prepared in the conduct of the accountant's audit, and any communications related to the audit between the accountant and the insurer, at the offices of the insurer, at the Maryland Insurance Administration, or at any other reasonable place designated by the Commissioner.
B. The insurer shall require that the accountant retain the audit workpapers and communications until the Maryland Insurance Administration has filed a report on examination covering the period of the audit but not longer than 7 years from the date of the audit report.
C. In the conduct of the periodic review described in §A of this regulation, the Maryland Insurance Administration may make and retain photocopies of pertinent audit workpapers.
D. The reviews described in §A of this regulation, shall be considered investigations and all working papers and communications obtained during the course of the investigations shall be afforded the same confidentiality as other examination workpapers generated by the Maryland Insurance Administration.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.13 - Requirements for Audit Committees

Current through Register Vol. 51, No. 14, July 12, 2024
A. This regulation does not apply to:
(1) Foreign or alien insurers licensed in Maryland;
(2) An insurer that is a SOX compliant entity; or
(3) A direct or indirect wholly owned subsidiary of a SOX compliant entity.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.14 - Internal Audit Function Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. An insurer is exempt from the requirements of this section if:
(1) The insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $500,000,000; and
(2) The insurer is a member of a group of insurers and the group has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $1,000,000,000.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.15 - Conduct of Insurer in Connection with the Preparation of Required Reports and Documents

Current through Register Vol. 51, No. 14, July 12, 2024
A. A director or officer of an insurer may not, directly or indirectly:
(1) Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review, or communication required under this chapter; or
(2) Omit to state, or cause another person to omit to state, any material fact necessary in order to make statements made, in light of the circumstances under which the statements were made, not misleading to an accountant in connection with any audit, review, or communication required under this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.17 - Exemptions and Effective Dates

Current through Register Vol. 51, No. 14, July 12, 2024
A. Upon written application of any insurer, the Commissioner may grant an exemption from compliance with provisions of this chapter if:
(1) The exemption is not prohibited by statute; and
(2) The Commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organizational hardship upon the insurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.11 - Annual Financial Reporting › Section 31.05.11.18 - Canadian and British Companies

Current through Register Vol. 51, No. 14, July 12, 2024
A. In the case of Canadian and British insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their supervision authority duly audited by an independent chartered accountant.
B. For such insurers, the letter required in Regulation .05B of this chapter shall state that the accountant is aware of the requirements relating to the annual audited financial report filed with the Commissioner pursuant to Regulation .03 of this chapter, and shall affirm that the opinion expressed is in conformity with those requirements.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.12 - Property and Casualty Actuarial Opinion › Section 31.05.12.01 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. This chapter applies to property and casualty insurance companies:
(1) Domiciled in this State; or
(2) Authorized to do business in this State.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.12 - Property and Casualty Actuarial Opinion › Section 31.05.12.02 - Actuarial Opinion of Reserves and Supporting Documentation

Current through Register Vol. 51, No. 14, July 12, 2024
A. A property and casualty insurance company doing business in this State, unless otherwise exempted by the company's domiciliary Commissioner, shall annually submit the opinion of the company's appointed actuary entitled "Statement of Actuarial Opinion".
B. The Statement of Actuarial Opinion required by §A of this regulation shall be filed in accordance with the appropriate National Association of Insurance Commissioners' (NAIC) Property and Casualty Annual Statement Instructions.
C. Actuarial Opinion Summary.
(1) A property and casualty insurance company domiciled in this State that is required to submit a Statement of Actuarial Opinion shall annually submit an Actuarial Opinion Summary, written by the company's Appointed Actuary.
(2) The Actuarial Opinion Summary required by §C(1) of this regulation, shall be filed in accordance with the appropriate NAIC Property and Casualty Annual Statement Instructions, and shall be considered as a document supporting the Statement of Actuarial Opinion required in §A of this regulation.
(3) A property and casualty insurance company licensed but not domiciled in this State shall provide the Actuarial Opinion Summary upon request of the Commissioner.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.12 - Property and Casualty Actuarial Opinion › Section 31.05.12.03 - Confidentiality

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Statement of Actuarial Opinion shall be provided with the Annual Statement in accordance with the appropriate NAIC Property and Casualty Annual Statement Instructions, and shall be treated as a public document.
B. Documents, materials, or other information in the possession or control of the Maryland Insurance Administration that are considered an Actuarial Report, workpapers underlying the Actuarial Report, or an Actuarial Opinion Summary provided pursuant to Regulation .02 of this chapter, and any other material provided by the property and casualty insurance company to the Commissioner in connection with the Actuarial Report, workpapers underlying the Actuarial Report, or Actuarial Opinion Summary, shall be considered to have been generated pursuant to an analysis or examination conducted under Insurance Article, §
									2-205, Annotated Code of Maryland, and shall be confidential and privileged pursuant to Insurance Article, §
									2-209, Annotated Code of Maryland.
C. Documents, materials, or other information in the possession or control of the Maryland Insurance Administration pursuant to §B this regulation, and any other material provided by the company to the Commissioner in connection with the Actuarial Report, workpapers underlying the Actuarial Report, or Actuarial Opinion Summary are not subject to:
(1) Disclosure under Maryland's Public Information Act pursuant to State Government Article, Title 10, Subtitle 6, Annotated Code of Maryland;
(2) Subpoena; and
(3) Discovery or admissible in evidence in any private civil action.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.12 - Property and Casualty Actuarial Opinion › Section 31.05.12.04 - Effective Date

Current through Register Vol. 51, No. 14, July 12, 2024
This Act shall take effect January 1, 2010.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 06 - TAXES AND FEES › Chapter 31.06.01 - Allocation and Taxation of Premiums › Section 31.06.01.01 - Authority and Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
A. Pursuant to the authority contained in Insurance Article, Title 6, Subtitle 1, Annotated Code of Maryland, the State Insurance Commissioner prescribes by this chapter the methods of allocating the gross direct premium for business transacted by insurers.
B. The purpose of this chapter is to establish a uniform method for determining how premiums are to be allocated for premium tax purposes, and to make clear what that method is.