Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 200 - Insurance Solvency and Company Regulation › Chapter 2 - Reinsurance and Assumptions › Section 20 CSR 200-2.900 - Term and Universal Life Insurance Reserve Financing

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule sets forth rules and procedural
				  requirements which the director deems necessary to carry out the provisions of
				  the Law on Credit for Reinsurance, specifically, the provisions of section
				  375.246,
				  RSMo. The actions and information required by this rule are declared to be
				  necessary and appropriate in the public interest and for the protection of the
				  ceding insurers in this state.
(1) If any provision of this rule, or the
				application of the provision to any person or circumstance, is held invalid,
				the remainder of this rule, and the application of the provision to persons or
				circumstances other than those to which it is held invalid, shall not be
				affected.
(2) The purpose and
				intent of this regulation is to establish uniform, national standards governing
				reserve financing arrangements pertaining to life insurance policies containing
				guaranteed nonlevel gross premiums, guaranteed nonlevel benefits, and universal
				life insurance policies with secondary guarantees; and to ensure that, with
				respect to each such financing arrangement, funds consisting of primary
				security and other security, as defined in section (5) of this rule, are held
				by or on behalf of ceding insurers in the forms and amounts required herein. In
				general, reinsurance ceded for reserve financing purposes has one (1) or more
				of the following characteristics: some or all of the assets used to secure the
				reinsurance treaty or to capitalize the reinsurer-1) are issued by the ceding
				insurer or its affiliates; or 2) are not unconditionally available to satisfy
				the general account obligations of the ceding insurer; or 3) create a
				reimbursement, indemnification, or other similar obligation on the part of the
				ceding insurer or any of its affiliates (other than a payment obligation under
				a derivative contract acquired in the normal course and used to support and
				hedge liabilities pertaining to the actual risks in the policies ceded pursuant
				to the reinsurance treaty).
(3)
				Application. This regulation shall apply to reinsurance treaties that cede
				liabilities pertaining to covered policies, as that term is defined in
				subsection (5)(B) of this rule, issued by any life insurance company domiciled
				in this state. This rule and section
				375.246,
				RSMo, shall both apply to such reinsurance treaties, provided that in the event
				of a direct conflict between the provisions of this regulation and
				20 CSR
				200-2.100, the provisions of 20 CSR 200-2.900 shall
				apply, but only to the extent of the conflict.
(4) Exemptions from this Regulation. This
				regulation does not apply to the situations described in the following
				subsections:
(A) Reinsurance of-
1. Policies that satisfy the criteria for
				exemption set forth in
				20 CSR
				200-1.160(4)(F) or
				20 CSR
				200-1.160(4)(G), and which are issued
				before the later of-
A. The effective date of
				this regulation; and
B The date on
				which the ceding insurer begins to apply the provisions of VM-20 to establish
				the ceded policies' statutory reserves;