reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.04 - Valuation Standards for Individual Annuity and Pure Endowment Contracts › Section 31.05.04.07 - Projection Scale G2

Current through Register Vol. 51, No. 14, July 12, 2024
Projection Scale G2, as shown below, is a table containing annual rates, G2x, of mortality improvement by age for projecting future mortality rates beyond calendar year 2012 and was developed by the Society of Actuaries Committee on Life Insurance Research.
G2x
Age Nearest Birthday
Male
Female
0
0.010
0.010
1
0.010
0.010
2
0.010
0.010
3
0.010
0.010
4
0.010
0.010
5
0.010
0.010
6
0.010
0.010
7
0.010
0.010
8
0.010
0.010
9
0.010
0.010
10
0.010
0.010
11
0.010
0.010
12
0.010
0.010
13
0.010
0.010
14
0.010
0.010
15
0.010
0.010
16
0.010
0.010
17
0.010
0.010
18
0.010
0.010
19
0.010
0.010
20
0.010
0.010
21
0.010
0.010
22
0.010
0.010
23
0.010
0.010
24
0.010
0.010
25
0.010
0.010
26
0.010
0.010
27
0.010
0.010
28
0.010
0.010
29
0.010
0.010
30
0.010
0.010
31
0.010
0.010
32
0.010
0.010
33
0.010
0.010
34
0.010
0.010
35
0.010
0.010
36
0.010
0.010
37
0.010
0.010
38
0.010
0.010
39
0.010
0.010
40
0.010
0.010
41
0.010
0.010
42
0.010
0.010
43
0.010
0.010
44
0.010
0.010
45
0.010
0.010
46
0.010
0.010
47
0.010
0.010
48
0.010
0.010
49
0.010
0.010
50
0.010
0.010
51
0.011
0.010
52
0.011
0.011
53
0.012
0.011
54
0.012
0.011
55
0.013
0.012
56
0.013
0.012
57
0.014
0.012
58
0.014
0.012
59
0.015
0.013
60
0.015
0.013
61
0.015
0.013
62
0.015
0.013
63
0.015
0.013
64
0.015
0.013
65
0.015
0.013
66
0.015
0.013
67
0.015
0.013
68
0.015
0.013
69
0.015
0.013
70
0.015
0.013
71
0.015
0.013
72
0.015
0.013
73
0.015
0.013
74
0.015
0.013
75
0.015
0.013
76
0.015
0.013
77
0.015
0.013
78
0.015
0.013
79
0.015
0.013
80
0.015
0.013
81
0.014
0.012
82
0.013
0.012
83
0.013
0.011
84
0.012
0.010
85
0.011
0.010
86
0.010
0.009
87
0.009
0.008
88
0.009
0.007
89
0.008
0.007
90
0.007
0.006
91
0.007
0.006
92
0.006
0.005
93
0.005
0.005
94
0.005
0.004
95
0.004
0.004
96
0.004
0.004
97
0.003
0.003
98
0.003
0.003
99
0.002
0.002
100
0.002
0.002
101
0.002
0.002
102
0.001
0.001
103
0.001
0.001
104
0.000
0.000
105
0.000
0.000
106
0.000
0.000
107
0.000
0.000
108
0.000
0.000
109
0.000
0.000
110
0.000
0.000
111
0.000
0.000
112
0.000
0.000
113
0.000
0.000
114
0.000
0.000
115
0.000
0.000
116
0.000
0.000
117
0.000
0.000
118
0.000
0.000
119
0.000
0.000
120
0.000
0.000
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.04 - Valuation Standards for Individual Annuity and Pure Endowment Contracts › Section 31.05.04.08 - Application of the 2012 IAR Table

Current through Register Vol. 51, No. 14, July 12, 2024
A. In using the 2012 IAR Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows:
qx2012+n = qx2012(1 - G2x)n.
B. The resulting qx2012+n, as calculated in §A of this regulation, shall be rounded to three decimal places per 1,000.
C. The rounding described in §B of this regulation shall occur according to the formula in §A of this regulation, starting at the 2012 period table rate.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.05 - Valuation Standards for Group Annuity and Pure Endowment Contracts › Section 31.05.05.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
The purpose of this chapter is to approve the use of new mortality tables adopted by the National Association of Insurance Commissioners after 1980 as a basis for determining the minimum standards of valuation of annuities and pure endowments purchased under group annuity and pure endowment contracts.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.05 - Valuation Standards for Group Annuity and Pure Endowment Contracts › Section 31.05.05.02 - 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) "1983 GAM Tables" means the mortality tables:
(a) Developed by the Society of Actuaries Committee on Annuities;
(b) Adopted as a recognized mortality table for annuities in December 1983 by the National Association of Insurance Commissioners; and
(c) Set out in Regulation .03 of this chapter.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.05 - Valuation Standards for Group Annuity and Pure Endowment Contracts › Section 31.05.05.03 - 1983 GAM Tables

Current through Register Vol. 51, No. 14, July 12, 2024
A. 1983 GAM TABLE-MALES.
Age
q
5
.000342
6
.000318
7
.000302
8
.000294
9
.000292
10
.000293
11
.000298
12
.000304
13
.000310
14
.000317
15
.000325
16
.000333
17
.000343
18
.000353
19
.000365
20
.000377
21
.000392
22
.000408
23
.000424
24
.000444
25
.000464
26
.000488
27
.000513
28
.000542
29
.000572
30
.000607
31
.000645
32
.000687
33
.000734
34
.000785
35
.000860
36
.000907
37
.000966
38
.001039
39
.001128
40
.001238
41
.001370
42
.001527
43
.001715
44
.001932
45
.002183
46
.002471
47
.002790
48
.003138
49
.003513
50
.003909
51
.004324
52
.004755
53
.005200
54
.005660
55
.006131
56
.006618
57
.007139
58
.007719
59
.008384
60
.009158
61
.010064
62
.011133
63
.012391
64
.013868
65
.015592
66
.017579
67
.019804
68
.022229
69
.024817
70
.027530
71
.030354
72
.033370
73
.036680
74
.040388
75
.044597
76
.049388
77
.054758
78
.060678
79
.067125
80
.074070
81
.081484
82
.089320
83
.097525
84
.106047
85
.114836
86
.124170
87
.133870
88
.144073
89
.154859
90
.166307
91
.178214
92
.190460
93
.203007
94
.217904
95
.234086
96
.248436
97
.263954
98
.280803
99
.299154
100
.319185
101
.341086
102
.365052
103
.393102
104
.427255
105
.469531
106
.521945
107
.586518
108
.665268
109
.760215
110
1.000000
B. 1983 GAM TABLE-FEMALES
5
.000171
6
.000140
7
.000118
8
.000104
9
.000097
10
.000096
11
.000104
12
.000113
13
.000121
14
.000131
15
.000140
16
.000149
17
.000159
18
.000169
19
.000179
20
.000189
21
.000201
22
.000212
23
.000225
24
.000238
25
.000253
26
.000268
27
.000283
28
.000301
29
.000320
30
.000342
31
.000364
32
.000388
33
.000414
34
.000443
35
.000476
36
.000502
37
.000535
38
.000573
39
.000617
40
.000665
41
.000716
42
.000775
43
.000841
44
.000919
45
.001010
46
.001117
47
.001237
48
.001366
49
.001505
50
.001647
51
.001793
52
.001948
53
.002119
54
.002315
55
.002541
56
.002803
57
.003103
58
.003442
59
.003821
60
.004241
61
.004702
62
.005210
63
.005769
64
.006385
65
.007064
66
.007817
67
.008681
68
.009702
69
.010921
70
.012385
71
.014128
72
.016159
73
.018481
74
.021091
75
.023992
76
.027184
77
.030672
78
.034459
79
.038549
80
.042945
81
.047655
82
.052691
83
.058071
84
.063807
85
.069918
86
.076570
87
.084459
88
.091935
89
.101354
90
.111750
91
.123076
92
.135630
93
.149577
94
.165103
95
.182419
96
.201757
97
.222043
98
.243899
99
.268185
100
.295187
101
.325225
102
.358897
103
.395842
104
.438360
105
.487816
106
.545886
107
.614309
108
.694884
109
.789474
110
1.000000
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.05 - Valuation Standards for Group Annuity and Pure Endowment Contracts › Section 31.05.05.05 - Valuation Standards

Current through Register Vol. 51, No. 14, July 12, 2024
A. In valuing the reserve liabilities for annuities and pure endowments purchased under group annuity and pure endowment contracts in accordance with the provisions of Insurance Article, §
									5-305(f), Annotated Code of Maryland, insurers may use either the 1971 Group Annuity Mortality Table, the 1983 GAM Tables shown in Regulation .03 of this chapter, or the 1983 Table "a" shown in COMAR 31.05.04.03A for annuities and pure endowments purchased on or after July 1, 1980, and before January 1, 1987.
B. Except as provided in §§C and D of this regulation, the 1983 GAM Tables are to be used by insurers in valuing reserve liabilities in accordance with the provisions of Insurance Article, §
									5-305(f), Annotated Code of Maryland, for annuities and pure endowments purchased on and after January 1, 1987, under group annuity and pure endowment contracts.
C. Except as provided in §D of this regulation, either the 1983 GAM Table or the 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after July 1, 2004 under a group annuity or pure endowment contract.
D. The 1994 GAR Table shall be used for determining the minimum standard of valuation for any annuity or pure endowment purchased on or after July 1, 2005 under a group annuity or pure endowment contract.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.05 - Valuation Standards for Group Annuity and Pure Endowment Contracts › Section 31.05.05.06 - Application of the 1994 GAR Table

Current through Register Vol. 51, No. 14, July 12, 2024
In using the 1994 GAR Table, the mortality rate for a person age X in year (1994 + n) is calculated as follows:
qx1994+n = qx1994(1-AAx)n
where the qx1994 and AAxs are as specified in the 1994 GAR Table.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.06 - Investments of Life Insurers and Property and Casualty Insurers in High Yield/High Risk Obligations › Section 31.05.06.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
The purpose of this chapter is to protect the interests of policy holders of life insurers and property and casualty insurers admitted to do business in Maryland by limiting the amount of high yield/high risk obligations in which an insurer may invest, so that the assets of the insurer will be reasonable in relation to the insurer's liabilities and adequate to its financial needs, permitting policyholders to rely with confidence on the insurer's ability to fulfill its contractual obligations.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.06 - Investments of Life Insurers and Property and Casualty Insurers in High Yield/High Risk Obligations › Section 31.05.06.02 - 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) "Admitted assets" means those assets of the insurer which comply with the definition of the term contained in Insurance Article, §
										5-101, Annotated Code of Maryland, and which are listed on the last annual statement of the insurer filed with the Commissioner and valued in accordance with the then current instructions, rules, and regulations of the National Association of Insurance Commissioners and of the Commissioner.
(2) "High yield/high risk obligation" means an interest-bearing obligation which is not an investment grade obligation.
(3) "Interest-bearing obligation" means:
(a) An obligation of the type specified in Insurance Article, 5-511(d)(ii), (iii), (iv) and 5-608(d) and (e), Annotated Code of Maryland, for a reserve investment; or
(b) A collateral loan which meets the requirements of Insurance Article, §
											5-511(i), Annotated Code of Maryland, and is secured by an obligation described in §B(3)(a) of this regulation.
(4) "Investment grade obligation" means an interest-bearing obligation which qualifies under any of the following:
(a) The obligation is currently rated by Moody's Investors Service or by Standard and Poor's Corporation in one of the top four generic lettered rating classifications of either of those organizations;
(b) The obligation has been designated as "Yes X" or "Yes" or classified in designation (1) or (2) by the Securities Valuation Office of the National Association of Insurance Commissioners, or is determined by that office to qualify for a designation of "Yes X", "Yes", (1), or (2); or
(c) The obligation is currently given a corresponding rating by another rating agency approved by the Commissioner.
(5) "Person" means a person as defined in Insurance Article, §
										1-101(dd), Annotated Code of Maryland.
(6) "Rating agency" means the Securities Valuation Office of the National Association of Insurance Commissioners, Moody's Investors Service, Standard and Poor's Corporation, or any similar organization approved by the Commissioner at the request of an insurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.06 - Investments of Life Insurers and Property and Casualty Insurers in High Yield/High Risk Obligations › Section 31.05.06.03 - Applicability

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter is applicable to the acquisition of any high yield/high risk obligation by any life insurer or property and casualty insurer admitted to do business in Maryland.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.06 - Investments of Life Insurers and Property and Casualty Insurers in High Yield/High Risk Obligations › Section 31.05.06.04 - Acquisition of Certain Obligations

Current through Register Vol. 51, No. 14, July 12, 2024
A. A life insurer or property and casualty insurer admitted to do business in Maryland may not acquire directly or indirectly, except with the prior approval of the Commissioner, or except under a plan of replacement approved by the Commissioner in accordance with §C of this regulation, any high yield/high risk obligation of any person if, after giving effect to the acquisition, the aggregate cost of the acquisition plus the admitted value of all other high yield/high risk obligations then held by the insurer would exceed 20 percent of the insurer's admitted assets.
B. In considering approval of an acquisition in excess of the limit stated in §A of this regulation, the Commissioner shall consider the following factors:
(1) Requirements of law relating to the acquisition;
(2) The amount of capital and surplus of the life insurer or property and casualty insurer relative to its size and the activities in which it is currently engaged;
(3) The size of the life insurer or property and casualty insurer as measured by its assets, reserves, premium writings, and insurance in force;
(4) The quality, diversification, and liquidity of the life insurer's or property and casualty insurer's investment portfolio;
(5) The past and projected future trends in the amount of the life insurer's or property and casualty insurer's surplus as regards policyholders;
(6) The financial position of the life insurer or property and casualty insurer when investments in, and other transactions with, affiliated persons are excluded from assets.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.06 - Investments of Life Insurers and Property and Casualty Insurers in High Yield/High Risk Obligations › Section 31.05.06.05 - Collateral Loans

Current through Register Vol. 51, No. 14, July 12, 2024
If a collateral loan is secured by one or more high yield/high risk obligations as well as by other types of collateral, the amount of the collateral loan to be considered for purposes of Regulation .04A of this chapter shall be that fraction of the loan which the value of the high yield/high risk obligations bears to the total value of the collateral.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.06 - Investments of Life Insurers and Property and Casualty Insurers in High Yield/High Risk Obligations › Section 31.05.06.06 - Private Placements

Current through Register Vol. 51, No. 14, July 12, 2024
A. This regulation applies to private placements which have not been rated by rating agencies.
B. If a private placement does not qualify as an investment grade obligation in accordance with Regulation .02B(4) of this chapter it shall be considered a high yield/high risk obligation unless:
(1) In the case of an interest-bearing obligation which does not involve an equity feature, the interest rate charged is comparable to rates generally prevailing at the time of the loan for securities of comparable terms and duration which are classified in an investment grade classification (for example, BBB or Baa or higher) by at least one of the accepted rating agencies;
(2) In the case of an interest-bearing obligation which also provides minor equity benefits to the lender, the interest rate charged is comparable to interest rates generally prevailing at the time of the loan for securities of comparable terms and duration which are classified in the third grade (for example, A) by at least one of the accepted rating agencies; or
(3) In the case of an interest-bearing obligation which also provides substantial equity benefits to the lender, the interest rate charged is comparable to interest rates generally prevailing at the time of the loan for securities of comparable terms and duration which are classified in the second grade (for example, AA) by at least one of the accepted rating agencies.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.06 - Investments of Life Insurers and Property and Casualty Insurers in High Yield/High Risk Obligations › Section 31.05.06.07 - Separate Accounts

Current through Register Vol. 51, No. 14, July 12, 2024
A. This regulation is applicable only to life insurers, and not to property and casualty insurers.
B. In this regulation, the term "separate account" means a segregated asset account which is used to determine the basis of values of variable life insurance policies and variable annuity contracts and which complies with the requirements of Insurance Article, Title 16, Subtitle 6, Annotated Code of Maryland.
C. A life insurer, at its option, may regard the entire assets of a fund in a separate account as being investment grade assets if not more than 20 percent of the assets of the fund are invested in high yield/high risk obligations.
D. If more than 20 percent of the assets of a fund in account are invested in high yield/high risk obligations, the life insurer, at its option, may either:
(1) Allocate the assets of the fund between investment grade obligations and high yield/high risk obligations as the case may be; or
(2) Omit the total value of the fund from the calculation to be made under Regulation .04A of this chapter of both the life insurer's aggregate amount of high yield/high risk obligations and of its total admitted assets, if policyholders and contract holders selecting the funds have been furnished with a prospectus which indicates that the fund may invest in speculative or in high yield/high risk obligations.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.01 - Regulatory Considerations

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Insurance Commissioner recognizes that licensed insurers routinely enter into reinsurance agreements that yield legitimate relief to the ceding insurer from strain to the ceding insurer's surplus.
B. It is improper, however, for a licensed insurer, in the capacity of ceding insurer, to enter into a reinsurance agreement for the principal purpose of producing significant surplus aid for the ceding insurer, typically on a temporary basis, while not transferring all of the significant risks inherent in the business being reinsured.
C. Under this type of agreement, in substance or effect, the expected potential liability to the ceding insurer remains basically unchanged by the reinsurance transaction, notwithstanding certain risk elements in the reinsurance agreement, such as catastrophic mortality or extraordinary survival.
D. The terms of an agreement described in §§B and C of this regulation and Regulation .05 of this chapter violate:
(1) Insurance Article, §
										4-116, Annotated Code of Maryland, relating to financial statements, resulting in statements that do not properly reflect the financial condition of the ceding insurer;
(2) Insurance Article, §
										5-904(a), Annotated Code of Maryland, relating to reinsurance reserve credits, resulting in a ceding insurer improperly reducing liabilities or establishing assets for reinsurance ceded; and
(3) Insurance Article, §
										4-113(b)(3), Annotated Code of Maryland, relating to creating a situation that would be contrary to the interests of the policyholders or stockholders of the ceding insurer.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. This chapter applies to:
(1) Each domestic life and accident and health insurer, including nonprofit health service plans;
(2) Any other licensed life and accident and health insurer, including a nonprofit health services plan, that is not subject to a substantially similar regulation in its domiciliary state; and
(3) Each licensed property and casualty insurer with respect to its accident and health business.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.03 - 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) Credit Quality Risk.
(a) "Credit quality risk" means the risk that invested assets supporting the reinsured business will decrease in value creating the hazard that assets will default or that there will be a decrease in earning power.
(b) "Credit quality risk" does not include market value declines due to changes in interest rates.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.04 - Taking Reserve Credit or Establishing Assets for Reinsurance Ceded

Current through Register Vol. 51, No. 14, July 12, 2024
A. Allowed. Notwithstanding the prohibitions contained in Regulation .05 of this chapter, an insurer may, with the prior approval of the Commissioner, take the reserve credit and establish the assets for reinsurance ceded as the Commissioner considers consistent with the Insurance Article of the Annotated Code of Maryland, the Code of Maryland Regulations, and any actuarial interpretations or standards adopted by the Commissioner.
B. Limitation on Amount of Credit or Assets. An insurer may not take reserve credit or establish assets for reinsurance ceded in an amount that is greater than the underlying reserve of the ceding insurer supporting the policy obligations transferred under the reinsurance agreement.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.05 - Circumstances Under Which Reduction of Liability and Establishment of Asset Prohibited

Current through Register Vol. 51, No. 14, July 12, 2024
A. In general. An insurer may not, for reinsurance ceded, reduce any liability or establish any asset in any financial statement filed with the Commissioner if, by the terms of the reinsurance agreement, in substance or effect:
(1) Renewal expense allowances provided or to be provided to the ceding insurer by the reinsurer in any accounting period are not sufficient to cover anticipated allocable renewal expenses of the ceding insurer on the portion of the business reinsured, unless a liability is established for the present value of the shortfall using assumptions equal to the applicable statutory reserve basis on the business reinsured;
(2) The ceding insurer can be deprived of surplus or assets:
(a) At the reinsurer's option, or
(b) Automatically on the occurrence of some event, such as the insolvency of the ceding insurer;
(3) The ceding insurer is required to reimburse the reinsurer for negative experience;
(4) The ceding insurer is required, at specific points in time scheduled in the agreement, to terminate or automatically recapture all or part of the reinsurance ceded;
(5) The reinsurance agreement involves the possible payment by the ceding insurer to the reinsurer of amounts other than from income realized from the reinsured policies, such as reinsurance premiums or other fees or charges to a reinsurer that are greater than the direct premiums collected by the ceding company;
(6) All of the significant risk inherent in the business being reinsured is not transferred;
(7) The credit quality risk, reinvestment risk, or disintermediation risk is significant for the business reinsured and except as provided in Regulation .06B of this chapter, the ceding company does not:
(a) Transfer the underlying assets to the reinsurer, or
(b) Legally segregate the underlying assets in a trust or escrow account or otherwise establish a mechanism satisfactory to the Commissioner that legally segregates, by contract, the underlying assets;
(8) Settlements are made less frequently than quarterly or payments due from the reinsurer are not made in cash within 90 days after the settlement date;
(9) The ceding insurer is required to make representations or warranties:
(a) Not reasonably related to the business being reinsured, or
(b) About future performance of the business being reinsured; or
(10) The reinsurance agreement is entered into for the principal purpose of producing significant surplus aid for the ceding insurer, typically on a temporary basis, while not transferring all of the significant risks inherent in the business reinsured and, in substance or effect, the expected potential liability to the ceding insurer remains basically unchanged.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.06 - Determining Whether Significant Risk Exists

Current through Register Vol. 51, No. 14, July 12, 2024
A. Risk Table.
(1) The table contained in this section identifies for a representative sampling of products or types of business the risks that are considered to be significant.
(2) For products that are not included in the table, the risks determined to be significant shall be consistent with the table.
(3) Table.
Type of Policy
Morbidity Risk
Mortality Risk
Lapse Risk
CreditQualityRisk (C1)
ReinvestmentRisk (C2)
Disinter-mediationRisk (C3)
Health Insurance Other Than Long-Term Care or Disability
+
0
+
0
0
0
Health Insurance-Long-TermCare or Disability
+
0
+
+
+
0
Immediate Annuities
0
+
0
+
+
0
Single Premium DeferredAnnuities
0
0
+
+
+
+
Flexible Premium DeferredAnnuities
0
0
+
+
+
+
Guaranteed Interest Contracts
0
0
0
+
+
+
Other Annuity Deposit Business
0
0
+
+
+
+
Single Premium Whole Life
0
+
+
+
+
+
Traditional Non-Par Permanent
0
+
+
+
+
+
Traditional Non-Par Term
0
+
+
0
0
0
Traditional Par Permanent
0
+
+
+
+
+
Traditional Par Term
0
+
+
0
0
0
Adjustable Premium Permanent
0
+
+
+
+
+
Indeterminate Premium Permanent
0
+
+
+
+
+
Universal Life Flexible Premium
0
+
+
+
+
+
Universal Life Fixed Premium
0
+
+
+
+
+
Universal Life Fixed Premium(dump-in premiums allowed)
0
+
+
+
+
+
KEY: + = Significant . . 0 = Insignificant
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.07 - Filing Agreements with Commissioner

Current through Register Vol. 51, No. 14, July 12, 2024
A. Filing Required. A ceding insurer shall file with the Commissioner:
(1) Each agreement entered into after the effective date of this chapter that involves the reinsurance of business issued before the effective date of the agreement; and
(2) Any amendment to an agreement required to be filed under §A(1) of this regulation.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.08 - Requirements of Written Agreements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Execution by Both Parties. An insurer may not use a reinsurance agreement or an amendment to a reinsurance agreement to reduce any liability or to establish any asset in a financial statement filed with the Commissioner, unless the agreement, amendment, or a binding letter of intent has been duly executed by both parties not later than the "as of date" of the financial statement.
B. Letter of Intent-----Time of Execution. In the case of a letter of intent, a reinsurance agreement or an amendment to a reinsurance agreement shall 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.
C. Contents of Reinsurance Agreement. A reinsurance agreement shall provide that:
(1) The agreement constitutes the entire agreement between the parties with respect to the business being reinsured under the agreement;
(2) There are no understandings between the parties other than as expressed in the agreement; and
(3) Any change to the agreement is void unless made by amendment to the agreement and signed by both parties.
Code of Maryland Regulations › Title 31 - MARYLAND INSURANCE ADMINISTRATION › Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS › Chapter 31.05.07 - Life and Health Reinsurance Agreements › Section 31.05.07.09 - Existing Agreements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Subject to §B of this regulation, an insurer shall reduce to zero by December 31, 1998, any reserve credits or assets established with respect to reinsurance agreements entered into before the effective date of this chapter that, under this chapter, would not be entitled to recognition of the reserve credits or assets.
B. An insurer is entitled to the grace period for a reinsurance agreement under §A of this regulation only if the reinsurance agreement was in compliance with the law and regulations in existence immediately preceding 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 31.05.08 - Credit for Reinsurance › Section 31.05.08.01 - Applicability

Current through Register Vol. 51, No. 14, July 12, 2024
This chapter is applicable to any domestic authorized insurer who obtains reinsurance for itself from another insurer for all or part of its insurance risk.
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 31.05.08.03 - Credit for Reinsurance

Current through Register Vol. 51, No. 14, July 12, 2024
The Commissioner shall allow a domestic authorized insurer credit as an asset or deduction from liability for reinsurance that the insurer obtains, if the reinsurance is obtained:
A. From an insurer that was authorized in this State as of any date on which the statutory financial statement credit for reinsurance is claimed;
B. From an accredited reinsurer pursuant to Regulations .04-.07 of this chapter;
C. From a reinsurer maintaining trust funds for multiple cedents pursuant to Regulation .08-.11 of this chapter;
D. When required by law pursuant to Regulation .12 of this chapter;
E. From an unauthorized reinsurer pursuant to Regulations .14-.23 of this chapter; or
F. From a certified reinsurer pursuant to Regulations .24, .25, and .27 of this chapter.
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 31.05.08.04 - Approval Required for Accreditation of Reinsurer

Current through Register Vol. 51, No. 14, July 12, 2024
An unauthorized insurer may not act as an accredited reinsurer in the State, unless the Commissioner accepts the insurer as a reinsurer under Insurance Article, §
									5-906, Annotated Code of Maryland.
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 31.05.08.05 - Requirements for Accredited Reinsurer

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is accredited as a reinsurer in this State as of the date on which statutory financial statement credit for reinsurance is claimed.
B. For initial eligibility as an accredited reinsurer, an applicant shall file with the Commissioner:
(1) An appointment of the Commissioner as its attorney to receive legal process issued against the applicant in the State on a form approved by the Commissioner;
(2) A properly executed NAIC Form AR-1 Certificate of Assuming Insurer as evidence that the applicant agrees to submit to the jurisdiction of the State and to the Commissioner's authority to examine its books and records;
(3) If reinsuring a life insurer, a certificate of valuation issued by the insurance regulatory agency of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer;
(4) An annual statement fee pursuant to Insurance Article, §
										2-112(a)(8), Annotated Code of Maryland, and an annual fraud prevention fee pursuant to Insurance Article, §
										6-203(a), Annotated Code of Maryland;
(5) A Maryland Insurance Administration Reinsurance Application; and
(6) Upon request of the Commissioner:
(a) A certified copy of its annual statement for the preceding calendar year;
(b) Evidence that the insurer is licensed to transact insurance or reinsurance in at least one state or, in the case of a U.S. branch of an alien insurer, is entered through and licensed to transact insurance or reinsurance in at least one state;
(c) An audited financial report for the preceding calendar year prepared by an independent certified public accountant;
(d) A certificate of deposit issued by the official custodian of deposits of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer;
(e) A copy of the report of the last examination made of the applicant by the insurance regulatory agency of the applicant's state of domicile if a foreign insurer, or state of entry if an alien insurer; and
(f) Any other document or information that the Commissioner considers necessary to determine eligibility to act as an accredited 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 31.05.08.06 - Examination of Accredited Reinsurer

Current through Register Vol. 51, No. 14, July 12, 2024
Whenever the Commissioner considers it advisable, the Commissioner shall examine the affairs, transactions, accounts, records, and assets of each accredited 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 31.05.08.07 - Suspension or Revocation of Accreditation

Current through Register Vol. 51, No. 14, July 12, 2024
Contracts not qualifying for credit after suspension or revocation beyond secured obligations:
A. While a reinsurer's accreditation or certification is suspended, a reinsurance contract issued or renewed after the effective date of the suspension does not qualify for credit except to the extent the reinsurer's obligations under the contract are secured in accordance with Insurance Article, §
									5-914, Annotated Code of Maryland.
B. If a reinsurer's accreditation or certification is revoked, credit for reinsurance may not be granted after the effective date of the revocation except to the extent that the reinsurer's obligations under the contract are secured in accordance with Insurance Article, §
									5-911 or  5-914, Annotated Code of Maryland.
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 31.05.08.09 - Credit for Reinsurance - Reinsurers Maintaining Trust Funds for Multiple Cedents - Trusts

Current through Register Vol. 51, No. 14, July 12, 2024
A. Credit for reinsurance may not be granted unless the form of the trust and any amendments to the trust have been approved by either the insurance regulatory agency of the state where the trust is domiciled or the insurance regulatory agency of another state who, pursuant to the terms of the trust instrument, has accepted responsibility for regulatory oversight of the trust. The form of the trust and any trust amendments also shall be filed with the insurance regulatory agency of every state in which the ceding insurer beneficiaries of the trust are domiciled. The trust instrument shall provide that:
(1) Contested claims 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;
(2) Legal title to the assets of the trust shall be vested in the trustee for the benefit of the grantor's U.S. ceding insurers, their assigns, and successors in interest;
(3) The trust shall be subject to examination as determined by the Commissioner;
(4) The trust shall remain in effect for as long as the assuming insurer, or any member or former member of a group of insurers, shall have outstanding obligations under reinsurance contracts subject to the trust; and
(5) No later than February 28 of each year, the trustee of the trust shall report to the Commissioner in writing setting forth the balance in the trust and listing the trust's investments at the preceding year-end, and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire prior to the following December 31.
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 31.05.08.10 - Credit for Reinsurance - Reinsurers Maintaining Trust Funds for Multiple Cedents - Assets Deposited in the Trust

Current through Register Vol. 51, No. 14, July 12, 2024
A. Assets deposited in the trust shall be valued according to their current fair market value and shall consist only of cash in U.S. dollars, certificates of deposit issued by a qualified U.S. financial institution, clean, irrevocable, unconditional and "evergreen" letters of credit issued or confirmed by a qualified U.S. financial institution, and investments of the type specified in this regulation, but investments in or issued by an entity controlling, controlled by, or under common control with either the grantor or beneficiary of the trust may not exceed 5 percent of total investments.
B. No more than 20 percent of the total of the investments in the trust may be foreign investments authorized under §D(1)(d), D(3), E(2), or F of this regulation, and no more than 10 percent of the total of the investments in the trust may be securities denominated in foreign currencies.
C. For purposes of applying §B of this regulation, a depository receipt denominated in U.S. dollars and representing rights conferred by a foreign security shall be classified as a foreign investment denominated in a foreign currency.
D. The assets of a trust established to satisfy the requirements of Regulations .08-.11 of this chapter shall be invested only as follows:
(1) Government obligations that are not in default as to principal or interest, that are valid and legally authorized and that are issued, assumed, or guaranteed by:
(a) The United States or by any agency or instrumentality of the United States;
(b) A state of the United States;
(c) A territory, possession, or other governmental unit of the United States;
(d) An agency or instrumentality of a governmental unit referred to in §D(1)(b) and (c) of this regulation if the obligations shall be by law (statutory or otherwise) payable, as to both principal and interest, from taxes levied, or by law required to be levied, or from adequate special revenues pledged or otherwise appropriated, or by law required to be provided for making these payments, but may not be obligations eligible for investment under this section if payable solely out of special assessments on properties benefited by local improvements; or
(e) The government of any other country that is a member of the Organization for Economic Cooperation and Development and whose government obligations are rated A or higher, or the equivalent, by a nationally recognized statistical rating organization approved by the Securities Valuation Office;
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 31.05.08.11 - Credit for Reinsurance-Reinsurers Maintaining Trust Funds for Multiple Cedents-Additional Security

Current through Register Vol. 51, No. 14, July 12, 2024
A specific security provided to a ceding insurer by an assuming insurer pursuant to Regulation .14 of this chapter shall be applied, until exhausted, to the payment of liabilities of the assuming insurer to the ceding insurer holding the specific security prior to, and as a condition precedent for, presentation of a claim by the ceding insurer for payment by a trustee of a trust established by the assuming insurer pursuant to Regulations .08-.10 of this chapter.
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 31.05.08.12 - Credit for Reinsurance Required by Law

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this regulation, "jurisdiction" means a state, district, or territory of the United States and any lawful national government.
B. The Commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Regulations .03-.05, .08-.11, .14, and .24-.27 of this chapter, but only as to the insurance of risks located in jurisdictions where the reinsurance is required by the applicable law or regulation of 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 31.05.08.13 - Credit Allowed a Foreign Ceding Insurer - Repealed

Current through Register Vol. 51, No. 14, July 12, 2024
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 31.05.08.14 - Reduction from Liability for Reinsurance

Current through Register Vol. 51, No. 14, July 12, 2024
A. Notwithstanding Regulations .03-.13 of this chapter and subject to the requirements of this regulation, the Commissioner shall allow a ceding insurer a reduction from liability for reinsurance obtained from an assuming insurer for the payment of the obligations under a reinsurance contract.
B. Requirements.
(1) The Commissioner shall allow a ceding insurer a reduction from liability for the reinsurance ceded in an amount equal to the funds held by it or on its behalf, including funds held in trust, as security for the payment of the obligations under a reinsurance contract.
(2) The reduction from liability that is allowed a ceding insurer may not exceed the liabilities carried by the ceding insurer for the business reinsured.
(3) Any funds held by the ceding insurer, or on its behalf, as security for the payment of its obligations under a reinsurance contract shall be held for the exclusive benefit 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 31.05.08.15 - Required Standards for Trust Agreements Under Regulation .14

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General. A trust agreement established to meet the requirements of Regulation .14 of this chapter shall comply with this regulation.
B. Parties to Trust Agreement.
(1) A trust agreement shall be entered into between a beneficiary, a grantor, and a trustee, which shall be a qualified U.S. financial institution.
(2) A trust agreement shall be established for the sole benefit of the beneficiary.
(3) The failure of a trust agreement to identify the beneficiary does not affect any actions or rights that the Commissioner may take or possess under the laws of this State.
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 31.05.08.16 - Permitted Conditions for Trust Agreements

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General. A trust agreement established to meet the requirements of Regulation .14 of this chapter may include the provisions allowed under this regulation.
B. Resignation and Removal of Trustee.
(1) Subject to §B(2) of this regulation, a trust agreement may provide that the:
(a) Trustee may resign by delivering to the beneficiary and grantor written notice of resignation, effective not less than 90 days after receipt by the beneficiary and grantor; and
(b) Grantor may remove the trustee by delivering to the trustee and beneficiary written notice of removal, effective not less than 90 days after receipt by the trustee and beneficiary.