reglab/statecodes huggingface dataset:
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3511 - ACCOUNTANT'S LETTER OF QUALIFICATIONS

Current through Register Vol. 13, July 5, 2024
(1)
				The accountant shall furnish the insurer in connection with, and for inclusion
				in, the filing of the annual audited financial report, a letter stating:
(a) that the accountant is independent with
				respect to the insurer and conforms to the standards of his or her profession
				as contained in the code of professional ethics and pronouncements of the AICPA
				and the rules of professional conduct of the Montana board of public
				accountants or its applicable counterpart in a sister state;
(b) the background and experience in general,
				and the experience in audits of insurers of the staff assigned to the
				engagement, and whether each is an independent certified public accountant.
				Nothing within these rules shall be construed as prohibiting the accountant
				from utilizing such staff as he or she deems appropriate where use is
				consistent with the standards prescribed by generally accepted auditing
				standards;
(c) that the accountant
				understands the annual audited financial report and his or her opinion thereon
				will be filed in compliance with these rules and that the commissioner will be
				relying on this information in the monitoring and regulation of the financial
				position of insurers;
(d) that the
				accountant consents to the requirements of ARM
				6.6.3512 and that the accountant
				consents and agrees to make available for review by the commissioner, his
				designee or his appointed agent, the workpapers, as defined in ARM
				6.6.3512;
(e) a representation that
				the accountant is properly licensed by an appropriate state licensing authority
				and is a member in good standing in the AICPA; and
(f) a representation that the accountant is
				in compliance with the requirements of ARM
				6.6.3506 of these rules.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3512 - DEFINITION, AVAILABILITY, AND MAINTENANCE OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS' WORKPAPERS

Current through Register Vol. 13, July 5, 2024
(1) Workpapers are
				the records kept by the independent certified public accountant of the
				procedures followed, the tests performed, the information obtained, and the
				conclusions reached pertinent to his/her audit of the financial statements of
				an insurer. Workpapers, accordingly, may include audit planning documentation,
				work programs, analyses, memoranda, letters of confirmation and representation,
				abstracts of company documents and schedules or commentaries prepared or
				obtained by the independent certified public accountant in the course of his /
				her audit of the financial statements of an insurer and which support his/her
				opinion thereof.
(2) Every insurer
				required to file an audited financial report pursuant to these rules shall
				require the accountant to make available for review by department examiners,
				all workpapers prepared in the conduct of his/her and any communications
				related to the audit between the accountant and the insurer, at the offices of
				the insurer, at the department, or at any other reasonable place designated by
				the commissioner. The insurer shall require that the accountant retain the
				audit workpapers and communications until the department has filed a report on
				examination covering the period of the audit, but no longer than seven years
				from the date of the audit report.
(3) In the conduct of the aforementioned
				periodic review by the department examiners, photocopies of pertinent audit
				workpapers may be made and retained by the department. Such reviews by the
				department examiners shall be considered investigations and all working papers
				and communications obtained during the course of such investigations shall be
				afforded the same confidentiality as other examination workpapers generated by
				the department.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-701,
					 33-2-1517,
					 33-4-313,
					 33-5-413,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3513 - EXEMPTIONS AND EFFECTIVE DATES

Current through Register Vol. 13, July 5, 2024
This Rule has been transferred
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-1-701,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3514 - CANADIAN AND BRITISH COMPANIES

Current through Register Vol. 13, July 5, 2024
This Rule has been transferred
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3516 - CONDUCT OF INSURER IN CONNECTION WITH THE PREPARATION OF REQUIRED REPORTS AND DOCUMENTS

Current through Register Vol. 13, July 5, 2024
(1) No director or
				officer of an insurer shall, directly or indirectly:
(a) 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 subchapter; or
(b) 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 subchapter.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3518 - INTERNAL AUDIT FUNCTION REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) An
				insurer is exempt from the requirements of this rule if:
(a) 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
(b) if the insurer is a member of a group of insurers, 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.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3520 - EXEMPTIONS AND EFFECTIVE DATES

Current through Register Vol. 13, July 5, 2024
(1) Upon
				written application of any insurer, the commissioner may grant an exemption
				from compliance with any and all provisions of these rules if the commissioner
				finds, upon review of the application, that compliance would constitute a
				financial or organizational hardship upon the insurer. An exemption may be
				granted at any time and from time to time for a specified period or periods.
				Within ten days from a denial of an insurer's written request for an exemption,
				such insurer may make a written request for a hearing on its application for an
				exemption. Such hearing shall be held in accordance with
				33-1-701,
				MCA.
(2) Domestic insurers
				retaining certified public accountants on the effective date of this rule who
				qualify as independent shall comply with these rules for the year ending
				December 31, 2009, and each year thereafter unless the commissioner permits
				otherwise.
(3) Domestic insurers
				not retaining certified public accountants on the effective date of these rules
				who qualify as independent may meet the following schedule for compliance,
				unless the commissioner permits otherwise.
(a) as of December 31, 2009, file with the
				commissioner an audited financial report.
(b) for the year ending December 31, 2010,
				and each year thereafter, such insurers shall file with the commissioner all
				reports and communications required by these rules.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3521 - CANADIAN AND BRITISH COMPANIES

Current through Register Vol. 13, July 5, 2024
(1) In the
				case of Canadian and British insurers, the annual audited financial report must
				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.
(2) For such
				insurers, the letter required in ARM
				6.6.3505 must state that the
				accountant is aware of the requirements relating to the annual audited
				financial report filed with the commissioner pursuant to ARM
				6.6.3503, and must affirm that the
				opinion expressed is in conformity with such requirements.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.36 - Life and Health Reinsurance Agreements › Rule 6.6.3601 - SCOPE OF RULES

Current through Register Vol. 13, July 5, 2024
(1) These rules
				apply to all domestic life and accident and health insurers and to all other
				licensed life and accident and health insurers which are not subject to a
				substantially similar regulation in their domiciliary state. These rules also
				apply to licensed property and casualty insurers with respect to their accident
				and health business. These rules do not apply to assumption reinsurance, yearly
				renewable term reinsurance or certain nonproportional reinsurance such as
				stop-loss or catastrophe reinsurance.
Sec.
					 33-1-313 and
					 33-2-1517, MCA; IMP, Sec.
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.36 - Life and Health Reinsurance Agreements › Rule 6.6.3603 - WRITTEN AGREEMENT

Current through Register Vol. 13, July 5, 2024
(1) No reinsurance
				agreement or amendment to any agreement may be used to reduce any liability or
				to establish any asset in any financial statement filed with the department,
				unless the agreement, amendment or a binding letter of intent has been duly
				executed by both parties no later than the "as of date" of the financial
				statement.
(2) In the case of a
				letter of intent, a reinsurance agreement or an amendment to a reinsurance
				agreement must be executed within a reasonable period of time, not exceeding 90
				days from the execution date of the letter of intent, in order for credit to be
				granted for the reinsurance ceded.
(3) The reinsurance agreement must contain
				provisions to the effect that:
(a) The
				agreement constitutes the entire agreement between the parties with respect to
				the business being reinsured there under and that there are no understandings
				between the parties other than as expressed in the agreement; and
(b) Any change or modification to the
				agreement is null and void unless made by amendment to the agreement and signed
				by both parties.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.36 - Life and Health Reinsurance Agreements › Rule 6.6.3604 - EXISTING AGREEMENTS

Current through Register Vol. 13, July 5, 2024
(1) Insurers
				subject to these rules must reduce to zero by December 31, 1995, any reserve
				credits or assets established with respect to reinsurance agreements entered
				into prior to the effective date of these rules which, under the provisions of
				these rules would not be entitled to recognition of the reserve credits or
				assets; provided, however, that the reinsurance agreements must have been in
				compliance with laws or regulations in existence immediately preceding the
				effective date of these rules.
Sec.
					 33-1-313 and
					 33-2-1517, MCA; IMP, Sec.
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3701 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For the purposes of this subchapter, the following terms
				  shall have the following meanings:
(1)
				"Executive officer" means chief executive officer, chief operating officer,
				chief financial officer, treasurer, secretary, controller, and any other
				individual performing functions corresponding to those performed by the
				foregoing officers under whatever title.
(2) "Foreign insurer" shall include an alien
				insurer, except where clearly noted otherwise.
(3) "Ultimate controlling person" means that
				person which is not controlled by any other person.
(4) Unless the context otherwise requires,
				other terms found in these rules are used as defined in
				33-1-201,
				33-1-202, and
				33-1-1101, MCA. Other nomenclature
				or terminology is according to the Montana insurance code, or industry usage if
				not defined by the code.
Sec.
					 33-1-313 and
					 33-2-1517, MCA; IMP, Sec.
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3702 - FORMS-GENERAL REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) Forms A, B, C,
				D and F are intended to be guides in the preparation of the statements required
				by 33-2-1104,
				33-2-1111, and
				33-2-1113, MCA. They are not
				intended to be blank forms which are to be filled in. The statements filed must
				contain the numbers and captions of all items, but the text of the items may be
				omitted, provided the answers are prepared to indicate the scope of the items.
				All instructions appearing in the forms must be omitted from the statements.
				Unless expressly provided otherwise, if any item is inapplicable, or the answer
				to any item is in the negative, an appropriate statement to that effect shall
				be made.
(2) One complete copy of
				each statement including attached exhibits and other documents must be filed
				with the commissioner by personal delivery or mail addressed to the
				Commissioner of Securities and Insurance, Montana State Auditor, 840 Helena
				Avenue, Helena, MT 59601. An insurer must file a copy of Form C within 30 days
				of written request from a state insurance regulator in any state the insurer is
				authorized to do business. At least one of the copies must be manually signed
				in the manner prescribed on the form. Unsigned copies must be conformed. If the
				signature of any person is affixed pursuant to a power of attorney or other
				similar authority, a copy of such power of attorney or other authority must be
				filed with the statement.
(3)
				Statements should be prepared on 8 1/2" x 11" (or 8 1/2" x 14") paper and bound
				at the top left-hand corner. Exhibits and financial statements, unless
				specifically prepared for the filing, may be submitted in their original size.
				All copies of all statements, financial statements, and exhibits must be easily
				readable and suitable for photocopying. Debits in credit categories and credits
				in debit categories must be so designated and distinguishable on photocopies.
				Statements must be in the English language and monetary values must be stated
				in United States currency. If any exhibit or other paper or document filed with
				the statement is in a foreign language, it must be accompanied by a translation
				into the English language and any monetary value shown in a foreign currency
				normally must be converted into United States currency.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1104,
					 33-2-1111,
					 33-2-1113,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3703 - FORMS-INCORPORATION BY REFERENCE, SUMMARIES, AND OMISSIONS

Current through Register Vol. 13, July 5, 2024
(1) Information
				required by any item of Forms A, B, D, or F may be incorporated by reference in
				answer or partial answer to any other item. Information contained in any
				financial statement, annual report, proxy statement, statement filed with a
				governmental authority, or any other document may be incorporated by reference
				in answer or partial answer to any item of Forms A, B, D, or F, provided the
				document or paper is filed as an exhibit to the statement. Excerpts of
				documents may be filed as exhibits if the documents are extensive. Documents
				currently on file with the commissioner which were filed within three years
				need not be attached as exhibits. References to information contained in
				exhibits or in documents already on file must clearly identify the material and
				must specifically indicate that such material is to be incorporated by
				reference in answer to the item. Matter must not be incorporated by reference
				in any case where such incorporation would render the statement incomplete,
				unclear, or confusing.
(2) Where an
				item requires a summary or outline of the provisions of any document, only a
				brief statement must be made as to the pertinent provisions of the document. In
				addition to such statement, the summary or outline may incorporate by reference
				particular parts of any exhibit or document currently on file with the
				commissioner which was filed within three years and may be qualified in its
				entirety by such reference. In any case where two or more documents required to
				be filed as exhibits are substantially identical in all material respects
				except as to the parties, the dates of execution, or other details, a copy of
				only one of such documents need be filed with a schedule identifying the
				omitted documents and setting forth the material details in which such
				documents differ from the documents, a copy of which is filed.
AUTH:
					 33-1-313,
					 33-2-1517, MCA: IMP:
					 33-2-1104,
					 33-2-1111,
					 33-2-1113,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3704 - FORMS-INFORMATION UNKNOWN OR UNAVAILABLE AND EXTENSION OF TIME TO FURNISH

Current through Register Vol. 13, July 5, 2024
(1) If it is impractical to furnish any
				required information, document, or report at the time it is required to be
				filed, a separate document may be filed with the commissioner:
(a) identifying the information, document, or
				report in question;
(b) stating why
				filing at the time required is impractical; and
(c) requesting an extension of time to a
				specified date for filing the information, document, or report.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3705 - FORMS-ADDITIONAL INFORMATION AND EXHIBITS

Current through Register Vol. 13, July 5, 2024
(1) In addition to
				the information required to be included in Forms A, B, C, D, and F, any
				additional material information necessary to make the information contained in
				the forms not misleading must be added. Additional exhibits not required by the
				statement may be filed. The additional exhibits must indicate the subject
				matters they reference. Changes to Forms A, B, C, D, or F must include on the
				top of the cover page the phrase: "Change No. (insert number) to Form (A, B, C,
				D, or F)" and must indicate the date of the change rather than the date of the
				original filing.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1104,
					 33-2-1111,
					 33-2-1113,
					 33-2-1517,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3706 - FILING OF FORM A, REGARDING ACQUISITION OR CONTROL

Current through Register Vol. 13, July 5, 2024
(1) A person required to file a statement
				pursuant to
				33-2-1104, MCA, shall furnish the
				required information on Form A, which is made a part of these rules.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-1104,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3707 - AMENDMENTS TO FORM A

Current through Register Vol. 13, July 5, 2024
(1) The applicant
				shall promptly advise the commissioner of any changes in the information
				furnished on Form A arising subsequent to the date upon which the information
				was furnished, but prior to the commissioner's disposition of the
				application.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-1103,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3708 - REPORTING ACQUISITION OF DOMESTIC INSURERS

Current through Register Vol. 13, July 5, 2024
(1) If the person being acquired is deemed to
				be a "domestic insurer" solely because of the provisions of
				33-2-1104, MCA, the name of the
				domestic insurer on the cover page must be indicated as follows:
(a) "ABC Insurance Company, a subsidiary of
				XYZ Holding Company."
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3709 - FILING OF FORM B-ANNUAL REGISTRATION OF INSURERS

Current through Register Vol. 13, July 5, 2024
(1) An insurer required to file an annual
				registration statement pursuant to
				33-2-1111(2),
				MCA, shall furnish the required information on Form B, which is made a part of
				these rules.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-1111,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3710 - AMENDMENTS TO FORM B

Current through Register Vol. 13, July 5, 2024
(1) An amendment to
				Form B shall be filed within 15 days after the end of any month in which there
				is a material change to the information provided in the annual registration
				statement.
(2) Amendments must be
				filed in the Form B format with only those items which are being amended
				reported. Each amendment must include at the top of the cover page "Amendment
				No. (insert number) to Form B for (insert year)," and shall indicate the date
				of the change and not the date of the original filings.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-1111,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3711 - SUMMARY OF CHANGES TO REGISTRATION-STATEMENT FILING

Current through Register Vol. 13, July 5, 2024
(1) An insurer required to file an annual
				registration statement pursuant to
				33-2-1111(2),
				MCA, is also required to furnish information required on Form C, which is made
				a part of these rules.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-1111,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3712 - ALTERNATIVE AND CONSOLIDATED REGISTRATIONS

Current through Register Vol. 13, July 5, 2024
(1)
				Any authorized insurer may file a registration statement on behalf of any
				affiliated insurer or insurers which are required to register under
				33-2-1111, MCA. A registration
				statement may include information not required by
				33-2-1111, MCA, regarding any
				insurer in the insurance holding company system even if such insurer is not
				authorized to do business in this state. In lieu of filing a registration
				statement on Form B, the authorized insurer may file a copy of the registration
				statement or similar report which it is required in its state of domicile,
				provided:
(a) the statement or report
				contains substantially similar information required to be furnished on Form B;
				and
(b) the filing insurer is the
				principal insurance company in the insurance holding company system.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3713 - DISCLAIMERS AND TERMINATION OF REGISTRATION

Current through Register Vol. 13, July 5, 2024
(1)
				A disclaimer of affiliation or a request for termination of registration
				claiming that a person does not, or will not upon the taking of some proposed
				action, control another person (hereinafter referred to as the "subject") must
				contain the following information:
(a) the
				number of authorized, issued, and outstanding voting securities of the
				subject;
(b) with respect to the
				person whose control is denied, and all affiliates of such person, the number
				and percentage of shares of the subject's voting securities which are held of
				record, or known to be beneficially owned, and the number of such shares
				concerning which there is a right to acquire, directly or indirectly;
(c) all material relationships and bases for
				affiliation between the subject and the person whose control is denied and all
				affiliates of such person; and
(d)
				a statement explaining why the person should not be considered to control the
				subject.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3714 - FILING OF FORM D-TRANSACTIONS SUBJECT TO PRIOR NOTICE

Current through Register Vol. 13, July 5, 2024
(1) An insurer required to give notice of a
				proposed transaction pursuant to
				33-2-1113, MCA, shall furnish the
				required information on Form D, which is made a part of these rules.
(2) Agreements for cost sharing services and
				management services must at a minimum, and as applicable:
(a) identify the person providing services,
				and the nature of such services;
(b) set forth the methods to allocate
				costs;
(c) require timely
				settlement, not less frequently than on a quarterly basis, and in compliance
				with the requirements in the Accounting Practices and Procedures
				Manual;
(d) prohibit advancement of
				funds by the insurer to the affiliate except to pay for services defined in the
				agreement;
(e) state that the
				insurer will maintain oversight for functions provided to the insurer by the
				affiliate, and that the insurer will monitor services annually for quality
				assurance;
(f) define books and
				records of the insurer to include all books and records developed or maintained
				under or related to the agreement;
(g) specify that all books and records of the
				insurer are and remain the property of the insurer and are subject to control
				of the insurer;
(h) state that all
				funds and invested assets of the insurer are the exclusive property of the
				insurer, held for the benefit of the insurer, and are subject to the control of
				the insurer;
(i) include standards
				for termination of the agreement with and without cause;
(j) include provisions for indemnification of
				the insurer in the event of gross negligence, or willful misconduct on the part
				of the affiliate providing the services;
(k) specify that, if the insurer is placed in
				receivership or seized by the commissioner under the Insurers Supervision,
				Rehabilitation, and Liquidation Act:
(i) all
				of the rights of the insurer under the agreement extend to the receiver or
				commissioner; and
(ii) all books
				and records will immediately be made available to the receiver or commissioner,
				and shall be turned over to the receiver or commissioner immediately upon the
				receiver or the commissioner's request.
(l) specify that the affiliate has no
				automatic right to terminate the agreement if the insurer is placed in
				receivership pursuant to the Insurers Supervision, Rehabilitation, and
				Liquidation Act; and
(m) specify
				that the affiliate will continue to maintain any systems, programs, or other
				infrastructure notwithstanding a seizure by the commissioner under the Insurers
				Supervision, Rehabilitation, and Liquidation Act, and will make them available
				to the receiver, for so long as the affiliate continues to receive timely
				payment for services rendered.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3715 - EXTRAORDINARY DIVIDENDS AND OTHER DISTRIBUTIONS

Current through Register Vol. 13, July 5, 2024
(1) Requests for approval of extraordinary
				dividends or any other extraordinary distribution to shareholders must include
				the following:
(a) the amount of the proposed
				dividend;
(b) the date established
				for payment of the dividend;
(c) a
				statement as to whether the dividend is to be in cash or other property and, if
				in property, a description thereof, its cost, and its fair market value,
				together with an explanation of the basis for valuation;
(d) a copy of the calculations determining
				that the proposed dividend is extraordinary. The work paper must include the
				following information:
(i) the amounts,
				dates, and forms of payment of all dividends or distributions (including
				regular dividends but excluding distributions of the insurer's own securities)
				paid within the period of 12 consecutive months ending on the date fixed for
				payment of the proposed dividend for which approval is sought and commencing on
				the day after the same day of the same month in the preceding year;
(ii) surplus as regards policyholders (total
				capital and surplus) as of the 31st day of December next preceding;
(iii) if the insurer is a life insurer, the
				net gain from operations for the 12-month period ending the 31st day of
				December next preceding;
(iv) if
				the insurer is not a life insurer, the net income less realized capital gains
				for the 12-month period ending the 31st day of December next preceding and the
				two preceding 12-months periods; and
(v) if the insurer is not a life insurer, the
				dividends paid to stockholders excluding distributions of the insurer's own
				securities in the preceding two calendar years.
(e) a balance sheet and statement of income
				for the period intervening from the last annual statement filed with the
				commissioner and the end of the month preceding the month in which the request
				for dividend approval is submitted; and
(f) a brief statement as to the effect of the
				proposed dividend upon the insurer's surplus and the reasonableness of surplus
				in relation to the insurer's outstanding liabilities and the adequacy of
				surplus relative to the insurers financial needs.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3716 - ADEQUACY OF SURPLUS

Current through Register Vol. 13, July 5, 2024
(1) The factors set
				forth in 33-2-1113(6),
				MCA, are not intended to be an exhaustive list. In determining the adequacy and
				reasonableness of an insurer's surplus, no single factor will necessarily be
				controlling. The commissioner will consider the net effect of all of these
				factors plus other factors bearing on the financial condition of the insurer.
				In comparing the surplus maintained by other insurers, the commissioner will
				consider the extent to which each of these factors varies from company to
				company, and in determining the quality and liquidity of investments in
				subsidiaries, the commissioner will consider the individual subsidiary and may
				discount or disallow its valuation to the extent that the individual
				investments so warrant.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-1113,
					 33-2-1517,
					 MCA;
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3718 - ENTERPRISE RISK REPORT

Current through Register Vol. 13, July 5, 2024
(1) The ultimate
				controlling person of an insurer required to file an enterprise risk report
				pursuant to
				33-2-1111(7),
				MCA, shall furnish the required information on Form F, found in ARM
				6.6.3717.
AUTH:
					 33-1-313,
					 33-2-1517, MCA IMP:
					 33-2-1111,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.37 - Reporting by Holding Company Systems › Rule 6.6.3719 - GROUP CAPITAL CALCULATION

Current through Register Vol. 13, July 5, 2024
(1) The lead state
				commissioner has the discretion to exempt the ultimate controlling person from
				filing the annual group capital calculation if the lead state commissioner
				makes a determination that the insurance holding company system meets all of
				the following criteria:
(a) 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, of less than
				$1,000,000,000;
(b) Has no insurers
				within its holding company structure that are domiciled outside of the United
				States or one of its territories;
(c) Has no banking, depository, or other
				financial entity that is subject to an identified regulatory capital framework
				within its holding company structure;
(d) The holding company system attests that
				there are no material changes in the transactions between insurers and
				non-insurers in the group that have occurred since the last filing of the
				annual group capital; and
(e) The
				non-insurers within the holding company system do not pose a material financial
				risk to the insurer's ability to honor policyholder obligations.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3801 - 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 6.6.38 - Credit for Reinsurance › Rule 6.6.3802 - TRUST AGREEMENT CONDITIONS (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 6.6.38 - Credit for Reinsurance › Rule 6.6.3803 - CONDITIONS APPLICABLE TO REINSURANCE AGREEMENTS (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 6.6.38 - Credit for Reinsurance › Rule 6.6.3804 - RESTRICTIONS ON AMENDMENT OF TRUST AGREEMENTS (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 6.6.38 - Credit for Reinsurance › Rule 6.6.3805 - FINANCIAL REPORTING (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 6.6.38 - Credit for Reinsurance › Rule 6.6.3806 - EFFECT OF FAILURE TO IDENTIFY BENEFICIARY (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 6.6.38 - Credit for Reinsurance › Rule 6.6.3807 - EFFECT OF LOSS OF ACCREDITATION BY ASSUMING REINSURER (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 6.6.38 - Credit for Reinsurance › Rule 6.6.3808 - SURPLUS DETERMINATION OF A GROUP OF INCORPORATED INSURERS UNDER COMMON ADMINISTRATION (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 6.6.38 - Credit for Reinsurance › Rule 6.6.3809 - THE PERIOD OF PAYMENT OF TRUST FUNDS SUBJECT TO CLAIMS (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 6.6.38 - Credit for Reinsurance › Rule 6.6.3810 - METHODS OF ALLOWING CREDIT FOR REINSURANCE

Current through Register Vol. 13, July 5, 2024
(1) These rules
				implement the statutory provisions allowing for credit for reinsurance. Credit
				for reinsurance is allowed only where a method set out in statute has been
				followed, including the following methods:
(a) assuming insurer is licensed in Montana,
				as provided in
				33-2-1216(2),
				MCA;
(b) assuming insurer is
				accredited in Montana, as provided in
				33-2-1216(3),
				MCA;
(c) assuming insurer is
				domiciled, and licensed in, or entered through another state with standards
				regarding credit for reinsurance substantially similar to those of this state,
				as provided in
				33-2-1216(4),
				MCA;
(d) assuming insurer maintains
				a trust fund, as provided in
				33-2-1216(5),
				MCA;
(e) assuming insurer is
				certified by the commissioner, as provided in
				33-2-1216(5)(e),
				MCA; or
(f) assuming insurer does
				not meet the requirements of
				33-2-1216, MCA, but the
				commissioner approves reduction from liability in the amount of funds held by,
				or on behalf of, the ceding insurer pursuant to
				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 6.6.3811 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
For the purposes of this subchapter, the following
				  definitions apply:
(1) "Beneficiary"
				includes any successor by operation of law of the named beneficiary, including
				without limitation any liquidator, rehabilitator, receiver, or conservator.
(2) "Grantor" means the entity
				that has established a trust for the sole benefit of the beneficiary. When
				established in conjunction with a reinsurance agreement, the grantor is the
				unlicensed, unaccredited assuming insurer.
(3) "Reinsurance agreement" or "reinsurance
				contract" means an agreement or contract between the assuming insurer and any
				other party for purposes of Title 33, chapter 2, part 12, MCA, and these rules.
				The original insured (ceding insurer) has no interest in a contract of
				reinsurance.
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 6.6.3812 - REINSURANCE TRANSACTIONS AFFECTED

Current through Register Vol. 13, July 5, 2024
(1) All new and
				renewal reinsurance transactions entered into after October 1, 1993, shall
				conform to the requirements of
				33-2-1201, 33-2-1202, 33-2-1203,
				33-2-1204,
				33-2-1205,
				33-2-1206,
				33-2-1207, 33-2-1208, 33-2-1209,
				33-2-1210,
				33-2-1211,
				33-2-1212, 33-2-1213, 33-2-1214,
				33-2-1215,
				33-2-1216,
				33-2-1217,
				33-2-1218, and these rules if
				credit is to be given to the ceding insurer for such reinsurance.
AUTH:
					 33-1-313,
					 33-2-1517, MCA; IMP:
					 33-2-1218,
					 MCA
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3813 - REQUIREMENTS FOR REINSURANCE CONTRACTS OR AGREEMENTS

Current through Register Vol. 13, July 5, 2024
(1) Credit will not be granted, nor an asset
				or reduction from liability allowed, to a ceding insurer for reinsurance
				pursuant to
				33-2-1216, or
				33-2-1217, MCA, and these rules
				unless the reinsurance contract or agreement includes:
(a) a clause which requires that the
				reinsurance is payable directly to the liquidator or successor by the assuming
				insurer without consideration of the insolvency of the ceding insurer;
				and
(b) a provision whereby the
				assuming insurer has submitted to the jurisdiction of an alternative dispute
				resolution panel or court of competent jurisdiction within the United States,
				and has agreed to comply with all requirements necessary to give such court or
				panel jurisdiction, has designated an agent upon whom service of process may be
				effected, and has agreed to abide by the final decision of such court or panel;
				and
(c) a proper reinsurance
				intermediary clause, if applicable, which stipulates that the credit risk for
				the intermediary is carried by the assuming insurer.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3814 - FORMS

Current through Register Vol. 13, July 5, 2024
(1) The following forms (and related
				instructions) are found on the web site of the Commissioner of Securities and
				Insurance, Office of the State Auditor:
(a)
				Form AR-1;
(b) Form CR-1;
(c) Form RJ-1;
(d) Form CR-F; and
(e) Form CR-S.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3815 - CREDIT FOR UNENCUMBERED FUNDS

Current through Register Vol. 13, July 5, 2024
(1) A
				ceding insurer may take credit for unencumbered funds withheld by the ceding
				insurer in the United States subject to withdrawal solely by the ceding insurer
				and under its exclusive control.
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 6.6.3821 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - PERIOD FOR PAYMENT OF TRUST FUNDS SUBJECT TO CLAIMS

Current through Register Vol. 13, July 5, 2024
(1) Contested
				claims under
				33-2-1216(5)(c),
				MCA, shall be valid and enforceable out of funds in trust to the extent
				remaining unsatisfied 30 days after entry of the final order of any court of
				competent jurisdiction in the United States.
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 6.6.3822 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - DEFINITION OF LIABILITIES

Current through Register Vol. 13, July 5, 2024
(1) For the
				purposes of
				33-2-1216(5)(b),
				MCA, the term "liabilities" means the assuming insurer's gross liabilities
				attributable to reinsurance ceded by United States domiciled insurers,
				excluding liabilities that are otherwise secured by acceptable means.
(2) For business ceded by domestic insurers
				authorized to write accident and health or disability, and property and
				casualty insurance, the term "liabilities" shall include:
(a) losses and allocated loss expenses paid
				by the ceding insurer, recoverable from the assuming insurer;
(b) reserves for losses reported and
				outstanding;
(c) reserves for
				losses incurred but not reported;
(d) reserves for allocated loss expenses;
				and
(e) unearned
				premiums.
Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.38 - Credit for Reinsurance › Rule 6.6.3823 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - INSUFFICIENT TRUST FUNDS OR TRUST FUND GRANTOR DECLARED INSOLVENT OR PLACED INTO RECEIVERSHIP, REHABILITATION, LIQUIDATION, OR SIMILAR PROCEEDINGS

Current through Register Vol. 13, July 5, 2024
(1) If the trust
				fund is inadequate because it contains an amount less than required by
				33-2-1216, MCA, or by ARM 6.6.3810
				through 6.6.3869, or if the grantor of the trust has been declared insolvent or
				placed into receivership, rehabilitation, liquidation, or similar proceedings
				under the laws of its state or country of domicile, the trustee shall comply
				with an order of the commissioner with regulatory oversight over the trust in
				accordance with the laws of the state in which the trust is domiciled or with
				an order of a court of competent jurisdiction directing the trustee to transfer
				to the commissioner with regulatory oversight over the trust in accordance with
				the laws of the state in which the trust is domiciled or other designated
				receiver all of the assets of the trust fund.
(2) Once so transferred, the trust fund
				assets shall be distributed by the commissioner described above pursuant to
				claims filed and valued by the commissioner with regulatory oversight over the
				trust in accordance with the laws of the state in which the trust is domiciled.
				Assets of the trust fund unclaimed or disallowed by the commissioner shall be
				distributed in accordance with 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 6.6.3824 - ASSUMING INSURER THAT MAINTAINS A TRUST FUND - VALUATION OF TRUST ASSETS

Current through Register Vol. 13, July 5, 2024
(1) Assets
				deposited in trusts established pursuant to
				33-2-1216(5),
				MCA, shall be valued according to their current fair market value and shall
				consist only of:
(a) cash in U.S.
				dollars;
(b) certificates of
				deposit issued by a U.S. financial institution; and
(c) investments of the type specified in ARM
				6.6.3826 through 6.6.3832.