Pennsylvania Code › Title 31 - INSURANCE › Part VIII - Miscellaneous Provisions › Chapter 163 - REQUIREMENTS FOR FUNDS HELD AS SECURITY FOR THE PAYMENT OF OBLIGATIONS OF UNLICENSED, UNQUALIFIED REINSURERS › Section 163.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
				  have the following meanings, unless the context clearly indicates
				  otherwise:
Act
-The Insurance Company Law of 1921
				  (40
				  P. S. §§
										341-991.1718).
Association
-Individuals, partnerships or
				  associations of individuals, authorized to engage in the business of insurance
				  in this Commonwealth as insurers on the Lloyds plan.
Beneficiary
-The domestic ceding insurer, or
				  domestic ceding insurers who are members of the same holding company system and
				  are participating in a joint reinsurance pooling arrangement or other
				  arrangement establishing the respective rights of each ceding insurer within
				  the same holding company system, for whose benefit a trust or letter of credit
				  has been established and any successor of the beneficiary by operation of law.
				  If a successor in interest to the named beneficiary is effectuated by the
				  issuance of an order by a court of law, the successor beneficiary shall include
				  and be limited to the court appointed domiciliary receiver, including a
				  liquidator, rehabilitator or conservator.
Ceding insurer
-An insurer that has
				  transferred all or part of the insurance or reinsurance risk it has written to
				  another insurer or reinsurer.
Commissioner
-The Insurance Commissioner of
				  the Commonwealth.
Credit for reinsurance
-An increase in assets
				  or reduction in liabilities for reinsurance in financial statements filed with
				  the Department by domestic insurers in accordance with statutory insurance
				  accounting principles.
Department
-The Insurance Department of the
				  Commonwealth.
Domestic
-Incorporated or organized under the
				  laws of the Commonwealth.
Exchange
-Individuals, partnerships and
				  corporations, authorized by the laws of the Commonwealth to exchange with each
				  other inter-insurance or reciprocal insurance contracts.
Grantor
-An unlicensed, unqualified reinsurer
				  that has established a trust for the benefit of the beneficiary.
Insurer
-A stock or mutual insurance company,
				  including a title insurance company, association or exchange.
Qualified United States financial
				  institution-
(i) An
				institution that meets the following qualifications:
(A) Is organized or, in the case of a United
				States office of a foreign banking organization, licensed under the laws of the
				United States or a state thereof.
(B) Is regulated, supervised and examined by
				United States Federal or state authorities having regulatory authority over
				banks and trust companies.
(C) Has
				been determined by either the Commissioner or the Securities Valuation Office
				of the National Association of Insurance Commissioners or a successor thereto
				to meet standards of financial condition and standing that are considered
				necessary and appropriate to regulate the quality of financial institutions
				whose letters of credit will be acceptable to the Commissioner.