reglab/statecodes huggingface dataset:
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 6 - Voluntary Restructuring of Solvent Insurers (230-RICR-20-45-6) › Section 230-RICR-20-45-6.5 - Commutation Plans

Current through June 14, 2024
A. Application
				  Procedures
1. Any Applicant that wishes to
				  apply to the Court for an order implementing a Commutation Plan must first
				  submit the Commutation Plan for review by the Department.
2. A Commutation Plan may be submitted by a
				  company that has previously undergone an Insurance Business Transfer Plan that
				  has been approved by the Court.
3.
				  A Commutation Plan may be submitted by a protected cell formed under R.I. Gen.
				  Laws §
											27-64-4.
4. The Commutation Plan, submitted for review
				  by the Applicant, should contain all operative provisions. The following items
				  should be included or an explanation provided as to why the particular
				  provision is not included. This list is not exhaustive and other provisions may
				  be included in the commutation plan.
a.
				  Explanation of the Plan
b. Plan
				  Administration, including proposed form and manner of Notice
c. Effect on Creditors
d. Meetings of Creditors
e. Determination of Classes of
				  Creditors
f. Claims
				  Procedures
g. Alternative
				  Solutions
h. Financial
				  Position
i. Actuarial
				  Review
j. Enforcement
				  Provisions
k. Determination of
				  Liabilities
l. Dispute Resolution
				  Procedure
m. Payment of
				  Claims
n. Effect of
				  Insolvency
o. Termination of the
				  Commutation Plan
5. The
				  Department shall have sixty (60) days from the date of its receipt of the
				  Commutation Plan to provide comment on the Commutation Plan to the Applicant.
a. The Department may engage independent
				  consultants, at the Applicant's expense, as set forth in §
												6.9(C)   of this
				  Part, to assist the Department in its review of the Commutation Plan.
b. If the Department is unable to complete
				  its review within the sixty (60) days it may extend the time by informing the
				  Applicant of the reason for the extension and providing an estimate of the time
				  necessary to complete the review.
c. If the Department determines that it
				  cannot support the Commutation Plan as filed, the Applicant will be so informed
				  and given the opportunity to amend the Commutation Plan to satisfy the concerns
				  of the Department or withdraw the Commutation Plan.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 6 - Voluntary Restructuring of Solvent Insurers (230-RICR-20-45-6) › Section 230-RICR-20-45-6.6 - Regulation of Insurers

Current through June 14, 2024
A. All Insurers
				  subject to or formed as a result of this regulation shall be subject to all
				  statutes and regulations governing insurers as deemed applicable by the
				  Department.
B. Insurers subject to
				  or formed as a result of this regulation consent to the jurisdiction of the
				  Department with regard to ongoing oversight of operations, management and
				  solvency relating to the transferred business, including the authority of the
				  Department to conduct financial analysis and examinations pursuant to R.I. Gen.
				  Laws §
										27-13.1.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 6 - Voluntary Restructuring of Solvent Insurers (230-RICR-20-45-6) › Section 230-RICR-20-45-6.7 - Modification or Waiver

Current through June 14, 2024
A. If, for good
				  cause shown, the Department determines that any one or more of these
				  requirements in this regulation should be modified or waived, the Department
				  shall have the ability to approve an Insurance Business Transfer Plan or
				  Commutation plan with such modification or waiver.
B. An applicant that wishes to request such a
				  modification or waiver shall make such request in writing no later than the
				  filing of the Insurance Business Transfer Plan or Commutation Plan with the
				  Department.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 6 - Voluntary Restructuring of Solvent Insurers (230-RICR-20-45-6) › Section 230-RICR-20-45-6.8 - Fees

Current through June 14, 2024
A. At the time of application for
				  implementation of an Insurance Business Transfer Plan, the Applicant shall pay
				  a nonrefundable fee to the Department in the amount of $5,000 or such lesser
				  amount as the Department shall deem adequate.
B. At the time of application for
				  implementation of a Commutation Plan, the Applicant shall pay a nonrefundable
				  fee to the Department in the amount of $10,000 or such lesser amount as the
				  Department shall deem adequate.
C.
				  The applicant shall pay the expenses of the Department and its consultants as
				  set forth in R.I. Gen. Laws §
										27-14.5-5(b)(2)(i).
D. The Applicant shall pay the costs of
				  regulatory administration of the Commutation Plan as assessed by the Department
				  pursuant to R.I. Gen. Laws §
										27-14.5-5(b).
E. Failure to pay any of these fees shall be
				  grounds for the Department to request that the Court dismiss the Petition for
				  approval of the Commutation Plan prior to final order.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 6 - Voluntary Restructuring of Solvent Insurers (230-RICR-20-45-6) › Section 230-RICR-20-45-6.9 - Severability

Current through June 14, 2024
If any section, term, or provision of this Regulation
					 should be adjudged invalid for any reason, that judgment should not affect,
					 impair, or invalidate any remaining section, term, or provision, which shall
					 remain in full force and effect.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.1 - Authority

Current through June 14, 2024
This Regulation is promulgated pursuant to R.I. Gen. Laws
					 §§
										27-12-6 and
					 4214-17.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.2 - Purpose

Current through June 14, 2024
A. The purpose of this Regulation is to
				  improve the Rhode Island Insurance Division's surveillance of the financial
				  condition of insurers by requiring:
1. An
				  annual audit of financial statements reporting the financial position and the
				  results of operations of insurers by independent Certified Public
				  Accountants,
2. Communication of
				  Internal Control Related Matters Noted in an Audit, and
3. Management's Report of Internal Control
				  over Financial Reporting.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.4 - General Requirements Related to Filing and Extensions for Filing of Annual Audited Financial Reports and Audit Committee Appointment

Current through June 14, 2024
A. All insurers shall have an annual audit by
				  an independent Certified Public Accountant and shall file an audited financial
				  report with the Commissioner on or before June 1 for the year ended December 31
				  immediately preceding. The Commissioner may require an insurer to file an
				  audited financial report earlier than June 1 with ninety (90) days advance
				  notice to the insurer.
B.
				  Extensions of the June 1 filing date may be granted by the Commissioner for
				  thirty (30) day periods upon showing by the insurer and its independent
				  Certified Public Accountant the reasons for requesting such extension and
				  determination by the Commissioner of good cause for an extension. The request
				  for extension must be submitted in writing not less than ten (10) days prior to
				  the due date in sufficient detail to permit the Commissioner to make an
				  informed decision with respect to the requested extension.
C. If an extension is granted in accordance
				  with the provisions in §
										7.4(B)   of this Part, a similar extension of thirty
				  (30) days is granted to the filing of Management's Report of Internal Control
				  over Financial Reporting.
D. Every
				  insurer required to file an annual aaudited financial report pursuant to this
				  eRgulation shall designate a group of individuals as constituting its Audit
				  committee, as defined in §
										7.3   of this Part. The Audit Committee of an
				  entity that controls an insurer may be deemed to be the insurer's Audit
				  Committee for purposes of this Regulation at the election of the controlling
				  person.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.5 - Contents of Annual Audited Financial Report

Current through June 14, 2024
A. The
				  annual aaudited financial report shall report the financial position of the
				  insurer as of the end of the most recent calendar year and the results of its
				  operations, cash flows and changes in capital and surplus for the year then
				  ended in conformity with statutory accounting practices prescribed, or
				  otherwise permitted, by the Department of Insurance of the state of
				  domicile.
B. The annual aaudited
				  financial report shall include the following:
1. Report of independent Certified Public
				  Accountant.
2. Balance sheet
				  reporting admitted assets, liabilities, capital and surplus.
3. Statement of operations.
4. Statement of cash flow.
5. Statement of changes in capital and
				  surplus.
6. Notes to financial
				  statements. These notes shall be those required by the appropriate NAIC Annual
				  Statement Instructions and NAIC Accounting Practices and Procedures Manual. The
				  notes shall include a reconciliation of differences, if any, between the
				  audited statutory financial statements and the annual statement filed pursuant
				  to R.I. Gen. Laws §
											27-12-1, with a written
				  description of the nature of these differences.
7. The financial statements included in the
				  aaudited financial report shall be prepared in a form and using language and
				  groupings substantially the same as the relevant sections of the annual
				  statement of the insurer filed with the Commissioner, and the financial
				  statement shall be comparative, presenting the amounts as of December 31 of the
				  current year and the amounts as of the immediately preceding December 31.
				  (However, in the first year in which an insurer is required to file an aaudited
				  financial report, the comparative data may be omitted).
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.7 - Qualifications of Independent Certified Public Accountant

Current through June 14, 2024
A. The Commissioner shall not recognize any
				  person or firm as a qualified independent Certified Public Accountant if the
				  person or firm:
1. Is not in good standing
				  with the AICPA and in all States in which the accountant is licensed to
				  practice, or, for a Canadian or British company, that is not a chartered
				  accountant; or
2. Has either
				  directly or indirectly entered into an agreement of indemnity or release from
				  liability (collectively referred to as "indemnification") with respect to the
				  audit of the insurer.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.8 - Consolidated or Combined Audits

Current through June 14, 2024
A. An insurer may
				  make written application to the Commissioner for approval to file audited
				  consolidated or combined financial statements in lieu of separate annual
				  audited financial statements if the insurer is part of a group of insurance
				  companies which utilizes a pooling or one hundred percent (100%) reinsurance
				  agreement that affects the solvency and integrity of the insurer's reserves and
				  such insurer cedes all of its direct and assumed business to the pool. In such
				  cases, a columnar consolidating or combining worksheet shall be filed with the
				  report, as follows:
1. Amounts shown on the
				  consolidated or combined aaudited financial report shall be shown on the
				  worksheet;
2. Amounts for each
				  insurer subject to §
											7.8   of this Part shall be stated separately;
3. Noninsurance operations may be shown on
				  the worksheet on a combined or individual basis;
4. Explanations of consolidating and
				  eliminating entries shall be included; and
5. A reconciliation shall be included of any
				  differences between the amounts shown in the individual insurer columns of the
				  worksheet and comparable amounts shown on the Annual Statements of the
				  insurers.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.9 - Scope of Audit and Report of Independent Certified Public Accountant

Current through June 14, 2024
Public Accountant Financial statements furnished pursuant
					 to §
										7.5   of this Part shall be examined by an independent Certified Public
					 Accountant. The audit of the insurer's financial statements shall be conducted
					 in accordance with generally accepted auditing standards. In accordance with AU
					 §
										319   of the Professional Standards of the AICPA, Consideration of Internal
					 Control in a Financial Statement Audit, the independent Certified Public
					 Accountant should obtain an understanding of internal control sufficient to
					 plan the audit. To the extent required by AU 319, for those insurers required
					 to file a Management's Report of Internal Control over Financial Reporting
					 pursuant to §
										7.17   of this Part, the independent Certified Public
					 Accountant should consider (as that term is defined in Statement on Auditing
					 Standards (SAS) No. 102, Defining Professional Requirements in Statements on
					 Auditing Standards or its replacement) the most recently available report in
					 planning and performing the audit of the statutory financial statements.
					 Consideration shall be given to the procedures illustrated in the financial
					 condition examiner's handbook promulgated by the National Association of
					 Insurance Commissioners as the independent Certified Public Accountant deems
					 necessary.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.10 - Notification of Adverse Financial Condition

Current through June 14, 2024
A. The
				  insurer required to furnish the annual audited financial report shall require
				  the independent Certified Public Accountant to report, in writing, within five
				  (5) business days to the board of directors or its Audit Committee any
				  determination by the independent Certified Public Accountant that the insurer
				  has materially misstated its financial condition as reported to the
				  Commissioner as of the balance sheet date currently under audit or that the
				  insurer does not meet the minimum capital and surplus requirement of the Rhode
				  Island Insurance Laws as of that date. An insurer who has received a report
				  pursuant to this paragraph shall forward a copy of the report to the
				  Commissioner within five (5) business days of receipt of such report and shall
				  provide the independent Certified Public Accountant making the report with
				  evidence of the report being furnished to the Commissioner. If the independent
				  Certified Public Accountant fails to receive such evidence within the required
				  five (5) business day period, the independent Certified Public Accountant shall
				  furnish to the Commissioner a copy of its report within the next five (5)
				  business days.
B. No independent
				  Certified Public Accountant shall be liable in any manner to any person for any
				  statement made in connection with the above paragraph if such statement is made
				  in good faith in compliance with §
										7.10(A)   of this Part.
C. If the accountant, subsequent to the date
				  of the aaudited financial report filed pursuant to this Regulation, becomes
				  aware of facts that might have affected his or her report, the Commissioner
				  notes the obligation of the accountant to take such action as prescribed in
				  Volume 1, Section AU 561 of the Professional Standards of the AICPA.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.11 - Communication of Internal Control Related Matters Noted in an Audit

Current through June 14, 2024
A. In addition to the annual aaudited
				  financial report, each insurer shall furnish the commissioner with a written
				  communication as to any unremediated material weaknesses in its Internal
				  control over financial reporting noted during the audit. Such communication
				  shall be prepared by the accountant within sixty (60) days after the filing of
				  the annual aaudited financial report, and shall contain a description of any
				  unremediated material weakness (as the term material weakness is defined by
				  Statement on Auditing Standard 60, Communication of Internal Control Related
				  Matters Noted in an Audit, or its replacement) as of December 31 immediately
				  preceding (so as to coincide with the aaudited financial report discussed in
				  §
										7.4(A)   of this Part in the insurer's Internal control over financial
				  reporting noted by the accountant during the course of their audit of the
				  financial statements. If no unremediated material weaknesses were noted, the
				  communication should so state.
B.
				  The insurer is required to provide a description of remedial actions taken or
				  proposed to correct unremediated material weaknesses, if such actions are not
				  described in the accountant's communication.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.12 - Accountant's Letter of Qualifications

Current through June 14, 2024
A. The accountant
				  shall furnish the insurer in connection with, and for inclusion in, the filing
				  of the annual audited financial report, a letter stating:
1. That the accountant is independent with
				  respect to the insurer and conforms to the standards of his or her profession
				  as contained in the Code of Professional Ethics and pronouncements of the AICPA
				  and the Rules of Professional Conduct of the Rhode Island Board of Public
				  Accountancy, or similar code;
2.
				  The background and experience in general, and the experience in audits of
				  insurers of the staff assigned to the engagement and whether each is an
				  independent Certified Public Accountant. Nothing within this Regulation shall
				  be construed as prohibiting the accountant from utilizing such staff as he or
				  she deems appropriate where use is consistent with the standards prescribed by
				  generally accepted auditing standards;
3. That the accountant understands the annual
				  audited financial report and his or her opinion thereon will be filed in
				  compliance with this Regulation and that the commissioner will be relying on
				  this information in the monitoring and regulation of the financial position of
				  insurers;
4. That the accountant
				  consents to the requirements of §
											7.13   of this Part and that the accountant
				  consents and agrees to make available for review by the commissioner, or the
				  commissioner's designee or appointed agent, the workpapers, as defined in
				  §
											7.13   of this Part;
5. A
				  representation that the accountant is properly licensed by an appropriate State
				  licensing authority and is a member in good standing in the AICPA;
				  and
6. A representation that the
				  accountant is in compliance with the requirements of §
											7.7   of this
				  Part.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.13 - Definition, Availability and Maintenance of Independent Certified Public Accountant Workpapers

Current through June 14, 2024
A. Workpapers are
				  the records kept by the independent Certified Public Accountant of the
				  procedures followed, the tests performed, the information obtained, and the
				  conclusions reached pertinent to the accountant's audit of the financial
				  statements of an insurer. Workpapers, accordingly, may include audit planning
				  documentation, work programs, analyses, memoranda, letters of confirmation and
				  representation, abstracts of company documents and schedules or commentaries
				  prepared or obtained by the independent Certified Public Accountant in the
				  course of his or her audit of the accountant's the financial statements of an
				  insurer and which support his or her opinion.
B. Every insurer required to file an audited
				  financial report pursuant to this Regulation, shall require the accountant to
				  make available for review by insurance department examiners, all workpapers
				  prepared in the conduct of the accountant's audit and any communications
				  related to the audit between the accountant and the insurer, at the offices of
				  the insurer, at the insurance department or at any other reasonable place
				  designated by the commissioner. The insurer shall require that the accountant
				  retain the audit workpapers and communications until the insurance department
				  has filed a report on examination covering the period of the audit but no
				  longer than seven (7) years from the date of the audit report.
C. In the conduct of the aforementioned
				  periodic review by the insurance department examiners, it shall be agreed that
				  photocopies or electronic copies of pertinent audit workpapers may be made and
				  retained by the department. Such reviews by the department examiners shall be
				  considered investigations and all working papers and communications obtained
				  during the course of such investigations shall be afforded the same
				  confidentiality as other examination workpapers generated by the department in
				  accordance with R.I. Gen. Laws §
										27-13.1-5.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.15 - Internal Audit Function Requirements

Current through June 14, 2024
A. Exemption
1. An insurer is exempt from the requirements
				  of §
											7.15   of this Part if:
a. The insurer
				  has annual direct written and unaffiliated assumed premium, including
				  international direct and assumed premium but excluding premiums reinsured with
				  the Federal Crop Insurance Corporation and Federal Flood Program, less than
				  five hundred million dollars ($500,000,000.00); and,
b. If the insurer is a member of a Group of
				  insurers that has annual direct written and unaffiliated assumed premium
				  including international direct and assumed premium, but excluding premiums
				  reinsured with the Federal Crop Insurance Corporation and Federal Flood
				  Program, less than one billion dollars ($1,000,000,000.00).
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.16 - Conduct of Insurer in Connection with the Preparation of Required Reports and Documents

Current through June 14, 2024
A. No Director or
				  Officer of an insurer shall, directly or indirectly:
1. Make or cause to be made a materially
				  false or misleading statement to an accountant in connection with any audit,
				  review or communication required under this Regulation; or
2. Omit to state, or cause another person to
				  omit to state, any material fact necessary in order to make statements made, in
				  light of the circumstances under which the statements were made, not misleading
				  to an accountant in connection with any audit, review or communication required
				  under this Regulation.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.19 - Canadian and British Companies

Current through June 14, 2024
A. In the case of
				  Canadian and British insurers, the annual audited financial report shall be
				  defined as the annual statement of total business on the form filed by such
				  companies with their supervision authority duly audited by an independent
				  chartered accountant.
B. For such
				  insurers, the letter required in §
										7.6(B)   of this Part shall state that the
				  accountant is aware of the requirements relating to the annual audited
				  financial report filed with the Commissioner pursuant to §
										7.4   of this Part
				  and shall affirm that the opinion expressed is in conformity with such
				  requirements.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.20 - Severability

Current through June 14, 2024
If any section, term or provision of this Regulation should
					 be adjudged invalid for any reason, that judgment should not effect, impair, or
					 invalidate any remaining section, term, or provision, which shall remain in
					 full force and effect.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 8 - Life and Health Reinsurance Agreements (230-RICR-20-45-8) › Section 230-RICR-20-45-8.1 - Authority

Current through June 14, 2024
This Part is adopted and promulgated pursuant to R.I. Gen.
					 Laws Chapter 27-4.2
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 8 - Life and Health Reinsurance Agreements (230-RICR-20-45-8) › Section 230-RICR-20-45-8.2 - Purpose

Current through June 14, 2024
The purpose of this Part is to establish definitions of the
					 risk categories noted in R.I. Gen. Laws §
										27-4.2-3(a)(6)
					 and to set forth an acceptable formula for determining the reserve interest
					 rate adjustment noted in R.I. Gen. Laws §
										27-4.2-3(a)(7)(iii).
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 8 - Life and Health Reinsurance Agreements (230-RICR-20-45-8) › Section 230-RICR-20-45-8.3 - Definitions

Current through June 14, 2024
A. "Morbidity" means the risk that a
				  policyholder will become ill, sick or contract a disease during the effective
				  dates of the policy.
B. "Mortality"
				  means the risk that a policyholder will die during the effective dates of the
				  policy.
C. "Lapse" means the risk
				  that a policy will voluntarily terminate prior to the recoupment of a statutory
				  surplus strain experienced at issue of the policy.
D. "Credit quality" means the risk that
				  invested assets supporting the reinsured business will decrease in value. The
				  main hazards are that assets will default or that there will be a decrease in
				  earning power. It excludes market value declines due to changes in the interest
				  rate.
E. "Reinvestment" means the
				  risk that interest rates will fall and funds reinvested (coupon payments or
				  monies received upon asset maturity or call) will therefore earn less than
				  expected. If asset durations are less than liability durations, the mismatch
				  will increase.
F.
				  "Disintermediation" means the risk that interest rates rise and policy loans
				  and surrenders increase or maturing contracts do not renew at anticipated rates
				  of renewal. If asset durations are greater than the liability durations, the
				  mismatch will increase. Policyholders will move their funds into new products
				  offering higher rates. The company may have to sell assets at a loss to provide
				  for these withdrawals
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 8 - Life and Health Reinsurance Agreements (230-RICR-20-45-8) › Section 230-RICR-20-45-8.4 - Accounting Requirements

Current through June 14, 2024
A. No insurer
				  subject to this Part shall, for reinsurance ceded, reduce any liability or
				  establish any asset in any financial statement filed with the Insurance
				  Division of the Department of Business Regulation if, by the terms of the
				  reinsurance agreement, in substance or effect, the treaty does not transfer all
				  of the significant risk inherent in the business being reinsured. The following
				  table identifies for a representative sampling of products or type of business,
				  the risks which are considered to be significant. For products not specifically
				  included, the risks determined to be significant shall be consistent with this
				  table:
B. Risk Categories
+ - significant 0 - insignificant
a
b
c
d
e
f
Risk Category
Health Insurance - Other Than Ltc/Ltd*
+
0
+
0
0
0
Health Insurance - Ltc/Ltd*
+
0
+
+
+
0
Immediate Annuities
0
+
0
+
+
0
Single Premium Deferred Annuities
0
0
+
+
+
+
Flexible Premium Deferred Annuities
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
+
+
+
+
+
*LTC Long Term Care Insurance
LTD Long Term Disability Insurance
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 8 - Life and Health Reinsurance Agreements (230-RICR-20-45-8) › Section 230-RICR-20-45-8.5 - Reserve Interest Rate Adjustment Formula

Current through June 14, 2024
A.
				  Pursuant to R.I. Gen. Laws §
										27-4.2-3(a)(7)(ii),
				  the associated formula for determining the reserve interest rate adjustment
				  must use a formula which reflects the ceding company's investment earnings and
				  incorporates all realized and unrealized gains and losses reflected in the
				  statutory settlement. The following is an acceptable formula:
Rate = 2 (I + CG) / (X + Y - I - CG)
Where:
I is the net investment income (Exhibit 2 of the
								annual statement).
CG is the Capital Gains less Capital Losses
								(Exhibit 4 of the annual statement).
X is the current year cash and invested assets plus
								investment income due and accrued less borrowed money.
Y is the same as X but for the prior year.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 8 - Life and Health Reinsurance Agreements (230-RICR-20-45-8) › Section 230-RICR-20-45-8.6 - Retroactive Reinsurance Resulting In Increased Surplus

Current through June 14, 2024
A. Any increase in surplus net of federal
				  income tax resulting from arrangements described in R.I. Gen. Laws §
										27-4.2-3(c)(1)
				  shall be identified separately on the insurer's statutory financial statement
				  as a surplus item (aggregate write-ins for gains and losses in surplus in the
				  Capital and Surplus Account, page 4 of the Annual Statement) and recognition of
				  the surplus increase as income shall be reflected on a net of tax basis in the
				  "Reinsurance ceded" line, page 4 of the Annual Statement as earnings emerge
				  from the business reinsured.
B. For
				  example, on the last day of calendar year N, company XYZ pays a $20 million
				  initial commission and expense allowance to company ABC for reinsuring an
				  existing block of business. Assuming a thirty four (34%) tax rate, the net
				  increase in surplus at inception is $13.2 million ($20 million - $6.8 million)
				  which is reported on the "Aggregate write-ins for gains and losses in surplus"
				  line in the Capital and Surplus account. $6.8 million (34% of $20 million) is
				  reported as income on the "Commissions and expense allowances on reinsurance
				  ceded" line of the Summary of Operations.
C. At the end of year N + l the business has
				  earned $4 million. ABC has paid $.5 million in profit and risk charges in
				  arrears for the year and has received a $1 million experience refund. Company
				  ABC's annual statement would report $1.65 million (66% of ($4 million - $1
				  million - %.5 million) up to a maximum of $13.2 million) on the "Commissions
				  and expense allowance on reinsurance ceded" line of the Summary of Operations,
				  and - $1.65 million on the "Aggregate write-ins for gains and losses in
				  surplus" line of the Capital and Surplus account. The experience refund would
				  be reported separately as a miscellaneous income item in the Summary of
				  Operations. Agreements which involve the reinsurance of business issued prior
				  to the effective date of the agreements should be filed by ceding Company with
				  the Commissioner within thirty days from the date of execution.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 9 - Actuarial Opinion and Memorandum (230-RICR-20-45-9) › Section 230-RICR-20-45-9.1 - Authority

Current through June 14, 2024
This Part is promulgated in accordance with R.I. Gen. Laws
					 Chapter 27-4.5.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 9 - Actuarial Opinion and Memorandum (230-RICR-20-45-9) › Section 230-RICR-20-45-9.2 - Purpose

Current through June 14, 2024
A. The purpose of this Part is to prescribe:
1. Requirements for statements of actuarial
				  opinion which are to be submitted in accordance with R.I. Gen. Laws §
											27-4.5-3, and for memoranda in
				  support thereof;
2. Rules
				  applicable to the appointment of an appointed actuary; and
3. Guidance as to the meaning of "adequacy of
				  reserves".
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 9 - Actuarial Opinion and Memorandum (230-RICR-20-45-9) › Section 230-RICR-20-45-9.3 - Scope

Current through June 14, 2024
A. This Part shall apply to all life
				  insurance companies and fraternal benefit societies doing business in this
				  State and to all life insurance companies and fraternal benefit societies which
				  are authorized to reinsure life insurance, annuities or accident and health
				  insurance business in this State.
B. This Part shall be applied in a manner
				  that allows the appointed actuary to utilize his or her professional judgment
				  in performing the asset analysis and developing the actuarial opinion and
				  supporting memoranda, consistent with relevant actuarial standards of practice.
				  However, the commissioner shall have the authority to specify specific methods
				  of actuarial analysis and actuarial assumptions when, in the commissioner's
				  judgment, these specifications are necessary for an acceptable opinion to be
				  rendered relative to the adequacy of reserves and related items.
C. This Part shall be applicable to all
				  annual statements filed with the office of the commissioner after the effective
				  date of this regulation. A statement of opinion on the adequacy of the reserves
				  and related actuarial items based on an asset adequacy analysis in accordance
				  with §
										9.6   of this Part, and a memorandum in support thereof in accordance
				  with §
										9.7   of this Part, shall be required each year.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 9 - Actuarial Opinion and Memorandum (230-RICR-20-45-9) › Section 230-RICR-20-45-9.4 - Definitions

Current through June 14, 2024
A. As used in this Part:
1. "Actuarial opinion" means the opinion of
				  an Appointed Actuary regarding the adequacy of the reserves and related
				  actuarial items based on an asset adequacy test in accordance with §
											9.6   of
				  this Part and with applicable Actuarial Standards of Practice.
2. "Actuarial Standards Board" means the
				  board established by the American Academy of Actuaries to develop and
				  promulgate standards of actuarial practice.
3. "Annual statement" shall mean that
				  statement required by R.I. Gen. Laws §§
											27-12-1 and
				  27-12.1-2 to be filed by the
				  company with the office of the Commissioner annually.
4. "Appointed Actuary" shall mean an
				  individual who is appointed or retained in accordance with the requirements set
				  forth in §
											9.5(C)   of this Part to provide the actuarial opinion and
				  supporting memorandum as required by R.I. Gen. Laws §
											27-4.5-3.
5. "Asset adequacy analysis" shall mean an
				  analysis that meets the standards and other requirements referred to in
				  §
											9.5(D)   of this Part.
6.
				  "Commissioner," shall mean the Director of the Department of Business
				  Regulation of this State.
7.
				  "Company" shall mean a life insurance company, fraternal benefit society or
				  reinsurer subject to the provisions of this Regulation.
8. "Qualified actuary" shall mean an
				  individual who meets the requirements set forth in §
											9.5(B)   of this
				  Part.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 9 - Actuarial Opinion and Memorandum (230-RICR-20-45-9) › Section 230-RICR-20-45-9.5 - General Requirements

Current through June 14, 2024
A. Submission of
				  Statement of Actuarial Opinion
1. There is to
				  be included on or attached to Page 1 of the Annual Statement for each year
				  beginning with the year in which this Regulation becomes effective the
				  statement of an appointed actuary, entitled "Statement of Actuarial Opinion,"
				  setting forth an opinion relating to reserves and related actuarial items held
				  in support of policies and contracts, in accordance with §
											9.6   of this
				  Part.
2. Upon written request by
				  the company, the commissioner may grant an extension of the date for submission
				  of the statement of actuarial opinion.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 9 - Actuarial Opinion and Memorandum (230-RICR-20-45-9) › Section 230-RICR-20-45-9.6 - Statement of Actuarial Opinion Based on an Asset Adequacy Analysis and Regulatory Asset Adequacy Issues Summary

Current through June 14, 2024
A. General
				  Description. The statement of actuarial opinion submitted in accordance with
				  this section shall consist of:
1. A paragraph
				  identifying the appointed actuary and his or her qualifications (see
				  §
											9.6(B)(1)   of this Part);
2. A
				  scope paragraph identifying the subjects on which an opinion is to be expressed
				  and describing the scope of the appointed actuary's work, including a
				  tabulation delineating the reserves and related actuarial items that have been
				  analyzed for asset adequacy and the method of analysis, (see §
											9.6(B)(2)   of
				  this Part) and identifying the reserves and related actuarial items covered by
				  the opinion that have not been so analyzed;
3. A reliance paragraph describing those
				  areas, if any, where the appointed actuary has deferred to other experts in
				  developing data, procedures or assumptions, (e.g., anticipated cash flows from
				  currently owned assets, including variation in cash flows according to economic
				  scenarios) (see §
											9.6(B)(4)   of this Part, supported by a statement of each
				  such expert in the form prescribed by §
											9.6(E)   of this Part; and
4. An opinion paragraph expressing the
				  appointed actuary's opinion with respect to the adequacy of the supporting
				  assets to mature the liabilities (see §
											9.6(B)(7)   of this Part.)
5. One or more additional paragraphs will be
				  needed in individual company cases as follows:
a. If the appointed actuary considers it
				  necessary to state a qualification of his or her opinion;
b. If the appointed actuary must disclose an
				  inconsistency in the method of analysis or basis of asset allocation used at
				  the prior opinion date with that used for this opinion.
c. If the appointed actuary must disclose
				  whether additional reserves of the prior opinion date are released as of this
				  opinion date, and the extent of the release.
d. If the appointed actuary chooses to add a
				  paragraph briefly describing the assumptions which form the basis for the
				  actuarial opinion.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 9 - Actuarial Opinion and Memorandum (230-RICR-20-45-9) › Section 230-RICR-20-45-9.8 - Severability

Current through June 14, 2024
If any provision of this Regulation or the application
					 thereof to any person or circumstances is held invalid or unconstitutional, the
					 invalidity or unconstitutionality shall not affect other provisions or
					 applications of this Regulation which can be given effect without the invalid
					 or unconstitutional provision or application, and to this end the provisions of
					 this Regulation are severable.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 10 - Captive Insurance Financial Regulation (230-RICR-20-45-10) › Section 230-RICR-20-45-10.1 - Authority

Current through June 14, 2024
This Regulation is promulgated pursuant to R.I. Gen. Laws
					 §§
										27-43-10 and
					 42-14-17.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 10 - Captive Insurance Financial Regulation (230-RICR-20-45-10) › Section 230-RICR-20-45-10.2 - Purpose

Current through June 14, 2024
The purpose of this Regulation is to set forth the
					 financial and reporting requirements which the director deems necessary for the
					 Regulation of captive insurance companies, as authorized by the Captive
					 Insurance Company Act, R.I. Gen. Laws §
										27-43-1, et seq. References herein
					 to "company" shall mean captive insurance company or companies, unless
					 otherwise specified.
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 10 - Captive Insurance Financial Regulation (230-RICR-20-45-10) › Section 230-RICR-20-45-10.3 - Definitions

Current through June 14, 2024
A. "Captive Insurance Company", "Industrial
				  Insured Captive Insurance Company", "Subsidiary Captive Insurance Company" and
				  "Parent" shall have the meanings ascribed to them in R.I. Gen. Laws §
										27-43-1.
B. "Director" means the Director of the
				  Department of Business Regulation
C. "Pure Captive Insurance Company" means a
				  Subsidiary Captive Insurance Company
Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 10 - Captive Insurance Financial Regulation (230-RICR-20-45-10) › Section 230-RICR-20-45-10.4 - Annual and Quarterly Reporting Requirements

Current through June 14, 2024
A.
				  Captive insurance companies shall annually file a statement of condition as
				  provided in R.I. Gen. Laws §
										27-12-1; provided, however, that
				  the commissioner may, upon written request of the captive insurance company,
				  allow a pure or subsidiary captive insurance company or industrial insured
				  captive insurance company to file a modified statement.
1. The modified statement shall be prepared
				  using generally accepted accounting principles, unless the Director approves
				  the use of statutory accounting principles, with any useful or necessary
				  modifications or adaptations thereof required or approved or accepted by the
				  Director for the type of insurance and kinds of insurers to be reported upon,
				  and as supplemented by additional information required by the commissioner. The
				  form of report shall be that prescribed by the Director as "Captive Annual
				  Statement -- Subsidiary (Pure) or Industrial Insured."
2. Any subsidiary or pure captive insurance
				  company may make written application for filing the required report on a fiscal
				  year-end provided, however, that its parent organization is on the same fiscal
				  year end. If an alternative reporting date is granted:
a. The annual report is due sixty (60) days
				  after the fiscal year-end; and
b.
				  In order to provide sufficient detail to support the premium tax return, the
				  subsidiary or pure captive insurance company shall file prior to March 1 of
				  each year for each calendar year-end, pages 1, 2, 3, and 5 of the "Captive
				  Annual Statement -- Subsidiary (Pure) or Industrial Insured," verified by oath
				  of two of its executive officers.