Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 231 - CERTIFICATES OF AUTHORITY FOR INSURANCE COMPANIES › Section 031-231-5 - Alien Insurers Seeking Initial Entry in Maine

Current through 2024-29, July 17, 2024
An insurer domiciled outside the United States that desires
				  to establish a United States Branch with the State of Maine as its port of
				  entry pursuant to
				   24-AM.R.S.A.
				  §413-A must submit an application for a
				  Certificate of Authority on the most current Uniform Certificate of Authority
				  Primary Application form, or its successor form, published by the National
				  Association of Insurance Commissioners, or its successor organization, with
				  such modifications as the Superintendent may specify. The Applicant shall
				  provide all information requested therein or explain in writing to the
				  Superintendent why a particular request is inapplicable to a port of entry
				  application. The Applicant shall provide such additional information as the
				  Superintendent may request in the course of reviewing the application,
				  sufficient to demonstrate compliance with the following requirements, except to
				  the extent that particular requirements may be waived or modified by the
				  Superintendent upon a finding that they are not applicable to the circumstances
				  of the application:
A.
Domiciliary Licensure
The Applicant must hold a valid Certificate of Authority from
				  its jurisdiction of domicile which authorizes it to transact those kinds of
				  insurance it proposes to transact in this State. If the Applicant does not
				  write a significant volume of business in its own jurisdiction of domicile, or
				  operates from a home office outside its jurisdiction of domicile, it must
				  explain the reasons to the satisfaction of the Superintendent.
B.
Establishment of
				United States Trust
The Applicant must comply with the requirements of Bureau of
				  Insurance Rule 860, including the establishment of a United States trust
				  account and proof that the account will be adequately funded consistent with
				  the Applicant's business plan for its United States branch.
C.
Business Name
The Applicant shall not use a business name deceptively
				  similar to that of any insurer currently holding a valid Certificate of
				  Authority. No application will be entertained that proposes to use a name that
				  has been reserved by another business entity with the Superintendent or the
				  Maine Secretary of State, until the period of reservation has expired or the
				  reserved name has been withdrawn.
D.
Historic Business
				Experience
The Superintendent shall evaluate the Applicant's historic
				  business experience in light of the factors set forth in Subsection
				  3(E), modified to the
				  extent necessary to give appropriate consideration to the differences between
				  operational practices and financial standards within and outside the United
				  States.
E.
Business Plan
The Applicant must provide proof that it will be able to
				  fulfill its obligations in a sound and responsible manner, in this State and in
				  all other jurisdictions in which the Applicant plans to operate. Factors to be
				  considered by the Superintendent shall include, without limitation:
(1) The soundness of the Applicant's business
				plan;
(2) The adequacy of the
				resources that have been committed for both expected and stress scenarios,
				including capital, reinsurance, personnel, and infrastructure;
(3) The existence of any financial guaranties
				or other mechanisms for access to additional capital in the event that it is
				needed;
(4) The experience and
				fitness of the Applicant's managers and owners; and
(5) The Applicant's compliance with any
				additional criteria that may be developed by the National Association of
				Insurance Commissioners for evaluating the establishment of United States
				branch operations.