Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 730 - STANDARDS FOR ACCEPTANCE OF REINSURANCE OF WORKERS' COMPENSATION SELF-INSURANCE › Section 031-730-5 - Specific qualifications

Current through 2024-29, July 17, 2024
A. An applicant
				must not use a business name deceptively similar to that of any insurer or
				reinsurer currently holding a valid certificate of authority. No application
				will be entertained that proposes to use a name that has been reserved pursuant
				to Title 13-C or Title 24-A M.R.S.A., until the period of such reservation has
				expired or the reserved name has been withdrawn.
B. An applicant must have been licensed in
				its state or country of domicile for a period of time immediately preceding
				this application adequate to demonstrate to the Superintendent its ability to
				accept reinsurance for self-insured workers' compensation risks in the State of
				Maine.
C. All applicants must
				demonstrate a reasonable expectation that their insurance and/or reinsurance
				business, taken as a whole, will operate at a profit, supported by
				documentation including, but not limited to, historical earnings records for
				the last 3 years and projections of operating results for the coming 5
				years.
D. Where trusteed assets are
				required hereunder, the trust fund shall be governed by the following
				provisions:
(1) Trusteed assets must qualify
				as admitted assets under, and be valued in accordance with, insurance
				accounting precepts. In addition, trusteed assets must be tangible in nature
				and readily convertible to cash in secondary markets.
(2) Trust deposits must be maintained in a
				qualified United States financial institution. For purposes of this regulation,
				a qualified United States financial institution means an institution that:
(a) Is organized, or in the case of a United
				States branch or agency office of a foreign banking organization is licensed,
				under the laws of the United States or any state of the United States, and has
				been granted authority to operate with fiduciary powers; and
(b) Is regulated, supervised, and examined by
				federal or state authorities having regulatory authority over banks and trust
				companies.
(3) Each year
				on or before March 1, the applicant shall cause the trustee bank or banks to
				report to the Superintendent in writing, setting forth the balance of the
				trust, listing the trust's investments at the end of the preceding year and
				certifying the date of any planned termination of the trust.
(4) The trust must be established in a form
				approved by the Superintendent. The trust instrument must provide that
				contested claims are valid and enforceable upon the final order of any court of
				competent jurisdiction in the United States. The trust must vest legal title to
				its assets in the trustees of the trust for the benefit of the applicant's
				United States policyholders and ceding insurers and self-insurers, their
				assigns and successors in interest. The trust and the applicant are subject to
				examination as determined by the Superintendent. The trust must remain in
				effect for as long as the applicant has outstanding obligations due under the
				reinsurance agreements subject to the trust, or until a qualified successor is
				appointed.