reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 284-07-700 - Purpose

Current through Register Vol. 24-14, July 15, 2024
The purpose of WAC 284-07-700 through 284-07-740 is to set
				  forth the procedures for filing and the required contents of the corporate
				  governance annual disclosure (CGAD), deemed necessary by the commissioner to
				  carry out the provisions of chapter 48.195 RCW.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 284-07-710 - Definitions

Current through Register Vol. 24-14, July 15, 2024
The definitions in this section apply throughout WAC
				  284-07-720 through 284-07-730 unless the context clearly requires
				  otherwise.
(1) "Commissioner" means
				the insurance commissioner of this state.
(2) "Insurance group" means those insurers
				and affiliates included within an insurance holding company system as defined
				in
				RCW
				 48.31B.005.
(3) "Insurer" has the same meaning as set
				forth in
				RCW
				 48.31B.005, except that it does not include
				agencies, authorities or instrumentalities of the United States, its
				possessions and territories, the Commonwealth of Puerto Rico, the District of
				Columbia, or a state or political subdivision of a state.
(4) "Senior management" means any corporate
				officer responsible for reporting information to the board of directors at
				regular intervals or providing this information to shareholders or regulators
				and shall include, for example and without limitation, the chief executive
				officer (CEO), chief financial officer (CFO), chief operations officer (COO),
				chief procurement officer (CPO), chief legal officer (CLO), chief information
				officer (CIO), chief technology officer (CTO), chief revenue officer (CRO),
				chief visionary officer (CVO), or any other "C" level executive.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 284-07-720 - Filing procedures

Current through Register Vol. 24-14, July 15, 2024
(1) An
				insurer, or the insurance group of which the insurer is a member, required to
				file a CGAD by chapter 48.195 RCW, must annually, no later than June 1st,
				submit to the commissioner a CGAD that contains the information described in
				WAC 284-07-730.
(2) The CGAD must
				include a signature of the insurer's or insurance group's chief executive
				officer or corporate secretary attesting to the best of that individual's
				belief and knowledge that the insurer or insurance group has implemented the
				corporate governance practices and that a copy of the CGAD has been provided to
				the insurer's or insurance group's board of directors (hereafter "board") or
				the appropriate committee thereof.
(3) The insurer or insurance group has
				discretion regarding the appropriate format for providing the information
				required by WAC 284-07-700 through 284-07-730 and is permitted to customize the
				CGAD to provide the most relevant information necessary to permit the
				commissioner to gain an understanding of the corporate structure, policies and
				practices utilized by the insurer or insurance group.
(4) For purposes of completing the CGAD, the
				insurer or insurance group may choose to provide information on governance
				activities that occur at either:
(a) The
				ultimate controlling parent level;
(b) an intermediate holding company level; or
(c) the individual legal entity
				level, or any combination of (a), (b), or (c) of this subsection, depending
				upon how the insurer or insurance group has structured its system of corporate
				governance. The insurer or insurance group is encouraged to make the CGAD
				disclosures at the level at which the insurer's or insurance group's risk
				appetite is determined, or at which the earnings, capital, liquidity,
				operations, and reputation of the insurer are overseen collectively and at
				which the supervision of those factors are coordinated and exercised, or the
				level at which legal liability for failure of general corporate governance
				duties would be placed. If the insurer or insurance group determines the level
				of reporting based on these criteria, it must indicate which of the three
				criteria was used to determine the level of reporting and explain any
				subsequent changes in level of reporting.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 284-07-730 - Contents of corporate governance annual disclosure

Current through Register Vol. 24-14, July 15, 2024
(1) The insurer or insurance group must be as
				descriptive as possible in completing the CGAD, with inclusion of attachments
				or example documents that are used in the governance process, since these may
				provide a means to demonstrate the strengths of their governance framework and
				practices.
(2) The CGAD must
				describe the insurer's or insurance group's corporate governance framework and
				structure including consideration of the following:
(a) The board and various committees thereof
				ultimately responsible for overseeing the insurer or insurance group and the
				level(s) at which that oversight occurs (e.g., ultimate control level,
				intermediate holding company, legal entity, etc.). The insurer or insurance
				group must describe and discuss the rationale for the current board size and
				structure; and
(b) The duties of
				the board and each of its significant committees and how they are governed
				(e.g., bylaws, charters, informal mandates, etc.), as well as how the board's
				leadership is structured, including a discussion of the roles of chief
				executive officer (CEO) and chairman of the board within the
				organization.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 284-07-740 - Severability clause

Current through Register Vol. 24-14, July 15, 2024
If any provision of WAC 284-07-700 through 284-07-730, or
				  the application to any person or circumstance is held invalid, the remainder of
				  WAC 284-07-700 through 284-07-730 or the application of the provision to other
				  persons or circumstances is not affected.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › Section 284-12-080 - Requirements for separate accounts

Current through Register Vol. 24-14, July 15, 2024
(1) The purpose of this section is to
			 effectuate
			 RCW
			  48.15.180,
			 48.17.600 and
			 48.17.480 with respect to the separation and accounting of premium funds by insurance
			 producers, title insurance agents and surplus line brokers, collectively
			 referred to in this section as "producers." Pursuant to
			 RCW
			  48.30.010, the commissioner has found and
			 hereby defines it to be an unfair practice for any producer, except as allowed
			 by statute, to conduct insurance business without complying with the
			 requirements of
			 RCW
			  48.15.180,
			 48.17.600 and this section.
(2) All funds
			 representing premiums as defined in
			 RCW
			  48.18.170, which includes premium taxes and
			 commissions, and return premiums received on Washington business by a producer
			 in his or her fiduciary capacity on or after January 1, 1987, must be deposited
			 in one or more identifiable separate accounts which may be interest bearing.
(a) A producer must not deposit funds other
			 than premiums as defined in
			 RCW
			  48.18.170, which includes premium taxes and
			 commissions and return premiums to the separate account except as follows:
(i) Funds reasonably sufficient to pay bank
			 charges;
(ii) Funds a producer may
			 deem prudent for advancing premiums, or establishing reserves for the paying of
			 return premiums;
(iii) Funds for
			 contingencies as may arise in the business of receiving and transmitting
			 premiums or return premiums; and
(iv) Fees paid by insureds as permitted under
			 RCW
			  48.17.270(2).
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › Section 284-12-095 - Unfair practice with respect to use of insurance producer defined

Current through Register Vol. 24-14, July 15, 2024
It is an unfair or deceptive practice and an unfair method of
				competition pursuant to
				RCW
				 48.30.010 for an authorized insurer to cancel
				or refuse to renew any insurance policy because its contract or arrangement
				with an appointed or a nonappointed insurance producer through whom such policy
				was written has been terminated.
Statutory Authority:
				  RCW
				  48.02.060(3)(a) and
				  48.17.010(5).
				  11-01-159 (Matter No. R 2010-09), §
										284-12-095, filed 12/22/10,
				  effective 1/22/11. Statutory Authority:
				  RCW
				   48.02.060, 48.05.310,
				  48.30.010 and
				  48.15.080. 91-23-032 (Order R
				  91-7), §
										284-12-095, filed 11/13/91,
				  effective 1/1/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › Section 284-12-110 - Identification of an insurance producer to a prospective insured

Current through Register Vol. 24-14, July 15, 2024
It shall be an unfair practice for an insurance producer
				initiating a sales presentation away from his or her office to fail to inform
				the prospective purchaser, prior to commencing the sales presentation, that the
				insurance producer is acting as an insurance producer, and to fail thereafter
				to inform the prospective purchaser of the full name of the insurance company
				whose product the insurance producer offers to the buyer. This rule shall apply
				to all lines of insurance and to all coverage solicited in this state including
				coverage under a group policy delivered in another state, whether or not
				membership in the group is also being solicited.
Statutory Authority:
				  RCW
				  48.02.060(3)(a) and
				  48.17.010(5).
				  11-01-159 (Matter No. R 2010-09), §
										284-12-110, filed 12/22/10,
				  effective 1/22/11. Statutory Authority:
				  RCW
				  48.02.060. 88-24-053 (Order R 88-12), §
										284-12-110, filed
				  12/7/88.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › MANAGING GENERAL AGENTS › Section 284-12-200 - Operating in this state

Current through Register Vol. 24-14, July 15, 2024
A managing general agent is "operating in this state" for
				  purposes of the Managing General Agents Act (chapter 48.-- RCW, sections 34-42,
				  chapter 462, Laws of 1993) ("the act") section 38(5), chapter 462, Laws of
				  1993, if he or she does in Washington any act for which a license is required
				  by the act or
				  chapter
				  48.17, or does in
				  Washington any activities listed in section 35(3)(a)(i) or (ii), chapter 462,
				  Laws of 1993.
Statutory Authority:
					 RCW
					 48.02.060 and 1993 c 462 § 41. 93-19-009
					 (Order R 93-13), §
											284-12-200, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › MANAGING GENERAL AGENTS › Section 284-12-210 - Affiliates

Current through Register Vol. 24-14, July 15, 2024
"Affiliates" as used in section 35(3)(a), chapter 462, Laws
				  of 1993, has the meaning indicated in RCW 48.--.--, section 2, chapter 462,
				  Laws of 1993.
Statutory Authority:
					 RCW
					 48.02.060 and 1993 c 462 § 41. 93-19-009
					 (Order R 93-13), §
											284-12-210, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › MANAGING GENERAL AGENTS › Section 284-12-220 - Licensed in this state

Current through Register Vol. 24-14, July 15, 2024
A person is licensed in this state for purposes of
				  RCW
				   48.98.010(1) and (2), if the
				  person holds a resident or nonresident insurance producer's license issued by
				  the commissioner.
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.17.010(5).
					 11-01-159 (Matter No. R 2010-09), §
											284-12-220, filed 12/22/10,
					 effective 1/22/11. Statutory Authority:
					 RCW
					  48.02.060 and 1993 c 462 § 41. 93-19-009
					 (Order R 93-13), §
											284-12-220, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › MANAGING GENERAL AGENTS › Section 284-12-230 - Notification of appointment

Current through Register Vol. 24-14, July 15, 2024
When notifying the commissioner of the appointment of a
				  managing general agent under section 38(5), chapter 462, Laws of 1993, in
				  addition to the information specified there, the insurer shall include the
				  following information about the appointee:
(1) Current address;
(2) Other addresses in the past five
				years;
(3) What licenses are held,
				and which states issued them;
(4)
				Whether any license has ever been revoked, suspended, or not renewed, and
				whether any disciplinary action has ever been taken or is now being considered
				by an insurance regulatory official or officer, and if so, give
				details.
Statutory Authority:
					 RCW
					 48.02.060 and 1993 c 462 § 41. 93-19-009
					 (Order R 93-13), §
											284-12-230, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › MANAGING GENERAL AGENTS › Section 284-12-250 - Employee

Current through Register Vol. 24-14, July 15, 2024
Whether a person is an "employee" of the insurer for purposes
				  of section 35(3)(b)(i), chapter 462, Laws of 1993, depends on the facts and is
				  not controlled by a mere labelling of the person as an employee in an
				  agreement.
Statutory Authority:
					 RCW
					 48.02.060 and 1993 c 462 § 41. 93-19-009
					 (Order R 93-13), §
											284-12-250, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › MANAGING GENERAL AGENTS › Section 284-12-260 - Form of financial statements

Current through Register Vol. 24-14, July 15, 2024
The independent audited financial statements required by
				  section 38(1), chapter 462, Laws of 1993, shall be in such a form that they
				  clearly show the results of operations, and the assets, liabilities, and equity
				  of the managing general agent, and the income and expense attributable to
				  acting as managing general agent for the insurer. Nothing in the act or this
				  regulation (WAC
				  284-12-200 through
				  284-12-260)  prevents the insurer
				  from requiring additional information, more detail, or a specified format so
				  long as that specified format at least meets the requirements of this
				  section.
Statutory Authority:
					 RCW
					 48.02.060 and 1993 c 462 § 41. 93-19-009
					 (Order R 93-13), §
											284-12-260, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › MANAGING GENERAL AGENTS › Section 284-12-270 - Expiration and renewal of appointments

Current through Register Vol. 24-14, July 15, 2024
Appointments of managing general agents shall be for two
				  years. They expire unless timely renewed. They expire on the same date that
				  insurance producer appointments for the same insurer expire under WAC
				  284-17-410.
Statutory Authority:
					 RCW
					 48.02.060(3)(a) and
					 48.17.010(5).
					 11-01-159 (Matter No. R 2010-09), §
											284-12-270, filed 12/22/10,
					 effective 1/22/11. Statutory Authority:
					 RCW
					  48.01.030,
					 48.02.060(3),
					 48.14.010 and 48.17.500(3).
					 94-14-110 (Order R 94-14), §
											284-12-270, filed 7/6/94,
					 effective 8/6/94. Statutory Authority:
					 RCW
					  48.02.060 and 1993 c 462 § 41. 93-19-009
					 (Order R 93-13), §
											284-12-270, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-12 - Insurance producers, title insurance agents, surplus line brokers, and adjusters › MANAGING GENERAL AGENTS › Section 284-12-280 - Claim thresholds

Current through Register Vol. 24-14, July 15, 2024
The claim threshold under sections 35(3)(a)(i) and
				  37(7)(b)(i) and (v), chapter 462, Laws of 1993, is twenty thousand
				  dollars.
Statutory Authority:
					 RCW
					 48.02.060 and 1993 c 462 § 41. 93-19-009
					 (Order R 93-13), §
											284-12-280, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › EARNED SURPLUS › Section 284-13-160 - Definition of "earned surplus"

Current through Register Vol. 24-14, July 15, 2024
(1) As used in
				RCW
				 48.08.030(1), "earned
				surplus" means that part of surplus that represents net earnings, gains, or
				profits, after deduction of all losses, that have not been distributed to share
				holders as dividends or transferred to stated capital or capital surplus or
				lawfully applied to other purposes. It does not include unrealized appreciation
				of assets, unrealized capital gains, or reevaluation of assets.
(2) Earned surplus can be determined from the
				annual statement.
(a) For stock life
				companies, earned surplus is unas-signed funds less any unrealized gains
				included in that figure; and
(b)
				For property and casualty stock companies, earned surplus is unassigned funds, less any unrealized gains included in that figure.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › ASSETS › Section 284-13-210 - Valuation of bonds

Current through Register Vol. 24-14, July 15, 2024
All bonds or other evidences of debt having a fixed term and
				  rate of interest held by an insurer may, if amply secured and not in default as
				  to principal or interest, be valued as follows:
(1) If purchased at par, at the par
				value.
(2) If purchased above or
				below par, on the basis of the purchase price adjusted so as to bring the value
				to par at maturity and so as to yield in the meantime the effective rate of
				interest at which the purchase was made, or in lieu of such method, according
				to such accepted method of valuation as is approved by the
				commissioner.
(3) Purchase price
				shall in no case be taken at a higher figure than the actual market value at
				the time of purchase, plus actual brokerage, transfer, postage, or express
				charges paid in the acquisition of such bonds or other evidences of
				debt.
(4) No method of valuation
				shall be inconsistent with any applicable valuation or method used by insurers
				in general, or any such method then currently formulated or approved by the
				National Association of Insurance Commissioners or its successor
				organization.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.12.180,
					 48.12.190 and
					 48.12.200. 93-19-007 (Order R
					 93-11), §
											284-13-210, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › ASSETS › Section 284-13-220 - Valuation of other securities

Current through Register Vol. 24-14, July 15, 2024
(1) Securities, other than those referred to
				in WAC 284-13-210, held by an insurer
				shall be valued, in the discretion of the commissioner, at their market value,
				or at their appraised value, or at prices determined by the commissioner as
				representing their fair market value.
(2) Preferred or guaranteed stocks or shares
				while paying full dividends may be carried at a fixed value in lieu of market
				value, at the discretion of the commissioner and in accordance with such method
				of valuation as he or she may approve.
(3) Stock of a subsidiary corporation of an
				insurer shall not be valued at an amount in excess of the net value thereof as
				based upon those assets only of the subsidiary which would be eligible under
				chapter
				48.13 RCW for investment
				of the funds of the insurer directly.
(4) No valuations under this section shall be
				inconsistent with any applicable valuation or method then currently formulated
				or approved by the National Association of Insurance Commissioners or its
				successor organization.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.12.180,
					 48.12.190 and
					 48.12.200. 93-19-007 (Order R
					 93-11), §
											284-13-220, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › ASSETS › Section 284-13-280 - Real estate appraisals

Current through Register Vol. 24-14, July 15, 2024
An insurer may not rely on an appraisal if the insurer knows
				  or should know that the appraisal is not reliable. An appraisal may be "not
				  reliable" because it was incorrect when done, because conditions affecting the
				  property have changed, or for other reasons.
Statutory Authority:
					 RCW
					  48.02.060. 93-19-010 (Order R 93-14), §
											284-13-280, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-500 - Purpose

Current through Register Vol. 24-14, July 15, 2024
The purpose of WAC
				  284-13-500 through
				  284-13-590 is to set forth rules
				  and procedural requirements which the commissioner deems necessary to carry out
				  the provisions of
				  RCW
				   48.12.400 through
				  48.12.499. The actions and
				  information required by WAC
				  284-13-500 through
				  284-13-590 are hereby declared to
				  be necessary and appropriate in the public interest and for the protection of
				  the ceding insurers in this state.
Statutory Authority:
					 RCW
					  48.02.060 and
					 48.12.160. 93-19-002 (Order R
					 93-6), §
											284-13-500, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-503 - Severability clause

Current through Register Vol. 24-14, July 15, 2024
If any provision of WAC
				  284-13-500 through
				  284-13-590 or its application to
				  any person or circumstances is held invalid, the remainder of WAC
				  284-13-500 through
				  284-13-590 to other persons or
				  circumstances is not affected.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-505

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority:
					 RCW
					  48.02.060,
					 48.12.160 and 1996 c 297 § 2.
					 97-05-012 (Matter No. R 96-10), §
											284-13-505, filed 2/10/97,
					 effective 3/13/97.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-510 - Credit for reinsurance - Reinsurer holding certificate of authority in this state

Current through Register Vol. 24-14, July 15, 2024
Under
				  RCW
				   48.12.410, the commissioner shall allow
				  credit for reinsurance ceded by a domestic insurer to an assuming insurer that
				  held a certificate of authority in this state as of any date on which statutory
				  financial statement credit for reinsurance is claimed.
Statutory Authority:
					 RCW
					  48.02.060 and
					 48.12.160. 93-19-002 (Order R
					 93-6), §
											284-13-510, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-515

Current through Register Vol. 24-14, July 15, 2024
Statutory Authority:
					 RCW
					  48.02.060,
					 48.12.160 and 1996 c 297 § 2.
					 97-05-012 (Matter No. R 96-10), §
											284-13-515, filed 2/10/97,
					 effective 3/13/97.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-516 - Credit for reinsurance - Accredited reinsurers

Current through Register Vol. 24-14, July 15, 2024
(1) Under
				RCW
				 48.12.415, 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. An accredited reinsurer
				must:
(a) File a properly executed Form AR-1
				as set forth in WAC
				284-13-595 as evidence of its
				submission to this state's jurisdiction and to this state's authority to
				examine its books and records;
(b)
				File with the commissioner a certified copy of a certificate of authority or
				other acceptable evidence that it is licensed to transact insurance or
				reinsurance in at least one state, or, in the case of a United States branch of
				an alien assuming insurer, is entered through and licensed to transact
				insurance or reinsurance in at least one state;
(c) File annually with the commissioner a
				copy of its annual statement filed with the insurance department of its state
				of domicile or, in the case of an alien assuming insurer, with the state
				through which it is entered and in which it is licensed to transact insurance
				or reinsurance, and a copy of its most recent audited financial statement;
				and
(d) Maintain a surplus as
				regards policyholders in an amount not less than twenty million dollars, or
				obtain the affirmative approval of the commissioner upon a finding that it has
				adequate financial capacity to meet its reinsurance obligations and is
				otherwise qualified to assume reinsurance from domestic insurers.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-517 - Credit for reinsurance - Reinsurer domiciled in another state

Current through Register Vol. 24-14, July 15, 2024
(1) Under
				RCW
				 48.12.420, the commissioner shall allow
				credit for reinsurance ceded by a domestic insurer to an assuming insurer that
				as of any date on which statutory financial statement credit for reinsurance is
				claimed:
(a) Is domiciled in, or in the case
				of a United States branch of an alien assuming insurer is entered through, a
				state that employs standards regarding credit for reinsurance substantially
				similar to those applicable under
				RCW
				 48.12.400 through
				48.12.499, and WAC
				284-13-500 through
				284-13-590;
(b) Maintains a surplus as regards
				policyholders in an amount not less than twenty million dollars; and
(c) Files a properly executed Form AR-1 with
				the commissioner as evidence of its submission to this state's authority to
				examine its books and records.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-520 - Credit for reinsurance - Certain reinsurers maintaining trust funds

Current through Register Vol. 24-14, July 15, 2024
Under
				  RCW
				   48.12.425, the commissioner shall allow
				  credit for reinsurance ceded by a domestic insurer to an assuming insurer
				  which, as of any date on which statutory financial statement credit for
				  reinsurance is claimed, and thereafter for so long as credit for reinsurance is
				  claimed, maintains a trust fund in an amount prescribed in WAC
				  284-13-530 through 284-13-538 in
				  a qualified United States financial institution as defined in
				  RCW
				   48.12.465(2), for the
				  payment of the valid claims of its United States domiciled ceding insurers,
				  their assigns and successors in interest. The assuming insurer must report
				  annually to the commissioner substantially the same information as that
				  required to be reported on the NAIC annual statement form by licensed insurers,
				  to enable the commissioner to determine the sufficiency of the trust
				  fund.
Statutory Authority:
					 RCW
					  48.02.060,
					 48.12.160 and 1996 c 297 § 2.
					 97-05-012 (Matter No. R 96-10), §
											284-13-520, filed 2/10/97,
					 effective 3/13/97. Statutory Authority:
					 RCW
					  48.02.060 and
					 48.12.160. 93-19-002 (Order R
					 93-6), §
											284-13-520, filed 9/1/93,
					 effective 10/2/93.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-530 - Credit for reinsurance - Certain alien reinsurers maintaining trust funds

Current through Register Vol. 24-14, July 15, 2024
The trust fund for a single assuming alien insurer must
				  consist of funds in trust in an amount not less than the assuming insurer's
				  liabilities attributable to reinsurance ceded by United States domiciled
				  insurers, and in addition, the assuming insurer must maintain a trusteed
				  surplus of not less than twenty million dollars, except as provided in WAC
				  284-13-531.
Statutory Authority:
					 RCW
					  48.02.060,
					 48.12.160 and 1996 c 297 § 2.
					 97-05-012 (Matter No. R 96-10), §
											284-13-530, filed 2/10/97,
					 effective 3/13/97.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-531 - Credit for reinsurance - Certain alien reinsurers maintaining trust funds - Assuming insurer discontinuing business

Current through Register Vol. 24-14, July 15, 2024
At any time after the assuming insurer has permanently
				  discontinued underwriting new business secured by the trust for at least three
				  full years, the commissioner with principal regulatory oversight of the trust
				  may authorize a reduction in the required trusteed surplus, but only after a
				  finding, based on an assessment of the risk, that the new required surplus
				  level is adequate for the protection of United States ceding insurers,
				  policyholders and claimants in light of reasonably foreseeable adverse loss
				  development. The risk assessment may involve an actuarial review, including an
				  independent analysis of reserves and cash flows, and must consider all material
				  risk factors, including when applicable, the lines of business involved, the
				  stability of the incurred loss estimates and the effect of the surplus
				  requirements on the assuming insurer's liquidity or solvency. The minimum
				  required trusteed surplus may not be reduced to an amount less than thirty
				  percent of the assuming insurer's liabilities attributable to reinsurance ceded
				  by United States ceding insurers covered by the trust.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-532 - Credit for reinsurance - Certain alien reinsurers maintaining trust funds - Group of incorporated and individual unincorporated underwriters

Current through Register Vol. 24-14, July 15, 2024
(1) The trust fund
				for a group including incorporated and individual unincorporated underwriters
				must consist of:
(a) For reinsurance ceded
				under reinsurance agreements with an inception, amendment or renewal date on or
				after January 1, 1993, funds in trust in an amount not less than the respective
				underwriters' several liabilities attributable to business ceded by United
				States domiciled ceding insurers to any underwriter of the group;
(b) For reinsurance ceded under reinsurance
				agreements with an inception date on or before December 31, 1992, and not
				amended or renewed after that date, notwithstanding the other provisions of WAC
				284-13-500 through
				284-13-590, funds in trust in an
				amount not less than the respective underwriters' several insurance and
				reinsurance liabilities attributable to business written in the United States;
				and
(c) In addition to these
				trusts, the group must maintain a trusteed surplus of which one hundred million
				dollars must be held jointly for the benefit of the United States domiciled
				insurers of any member of the group for all the years of account.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-533 - Credit for reinsurance - Certain alien reinsurers maintaining trust funds - Group of incorporated insurers under common administration

Current through Register Vol. 24-14, July 15, 2024
(1) The trust fund
				for a group of incorporated insurers under common administration, whose members
				possess aggregate policyholders surplus of ten billion dollars (calculated in
				substantially the same manner as prescribed by the annual statement
				instructions and accounting practices and procedures manual of the NAIC) and
				which has continuously transacted an insurance business outside the United
				States for at least three years immediately prior to making application for
				accreditation, must:
(a) Consist of funds in
				trust in an amount not less than the assuming insurers' several liabilities
				attributable to business ceded by United States domiciled ceding insurers to
				any member of the group under reinsurance contracts issued in the name of the
				group;
(b) Maintain a joint
				trusteed surplus of which one hundred million dollars must be held jointly for
				the benefit of United States domiciled ceding insurers of any member of the
				group; and
(c) File a properly
				executed Form AR-1 as evidence of the submission to this state's authority to
				examine the books and records of any of its members and must certify that any
				member examined will bear the expense of the examination.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-535 - Trust fund requirements

Current through Register Vol. 24-14, July 15, 2024
(1)
				Credit for reinsurance is not granted unless the form of the trust and any
				amendments to the trust have been approved by either the commissioner of the
				state where the trust is domiciled or the commissioner of another state who,
				under 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 must be filed with the commissioner of every state in which the
				ceding insurer beneficiaries of the trust are domiciled. The trust instruments
				must provide that:
(a) Contested claims must
				be valid and enforceable out of funds in trust to the extent remaining
				unsatisfied thirty days after entry of the final order of any court of
				competent jurisdiction in the United States.
(b) Legal title to the assets of the trust
				must be vested in the trustee for the benefit of the grantor's United States
				ceding insurers, their assigns and successors in interest.
(c) The trust must be subject to examination
				as determined by the commissioner.
(d) The trust must remain in effect for as
				long as the assuming insurer, or any member or former member of a group of
				insurers, has outstanding obligations under reinsurance agreements subject to
				the trust; and
(e) No later than
				February 28 of each year the trustees of the trust must 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 must certify the date of
				termination of the trust, if so planned, or certify that the trust does not
				expire prior to the following December 31.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-536 - Credit for reinsurance-Certain reinsurers maintaining trust funds-Liabilities defined

Current through Register Vol. 24-14, July 15, 2024
For purposes of WAC
				  284-13-520
				  through
				  284-13-538,
				  liabilities means the assuming insurer's gross liabilities attributable to
				  reinsurance ceded by United States domiciled insurers excluding liabilities
				  that are otherwise secured by acceptable means, and, must include:
(1) For business ceded by domestic insurers
				authorized to write accident and disability, and property and casualty
				insurance:
(a) Losses and allocated loss
				expenses paid by the ceding insurer, recoverable from the assuming
				insurer;
(b) Reserves for losses
				reported and outstanding;
(c)
				Reserves for losses incurred but not reported;
(d) Reserves for allocated loss expenses;
				and
(e) Unearned
				premiums.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-537 - Trust fund requirements - Assets

Current through Register Vol. 24-14, July 15, 2024
Assets deposited in trusts established under
				  RCW
				   48.12.405 through
				  48.12.455, and WAC
				  284-13-520 through 284-13-538
				  must be valued according to their current fair market value and must consist
				  only of cash in United States dollars, certificates of deposit issued by a
				  United States financial institution as defined in
				  RCW
				   48.12.465(1), clean,
				  irrevocable, unconditional and "evergreen" letters of credit issued or
				  confirmed by a qualified United States financial institution, as defined in
				  RCW
				   48.12.465(1), and
				  investments of the type specified in this section, but investments in or issued
				  by an entity controlling, controlled by, or under common control with either
				  the grantor or beneficiary of the trust must not exceed five percent of total
				  investments. No more than twenty percent of the total investments in the trust
				  may be foreign investments authorized under subsections (1)(e), (3), (6)(b), or
				  (7) of this section, and no more than ten percent of the total of the
				  investments in the trust may be securities denominated in foreign currencies.
				  For purposes of applying the preceding sentence, a depository receipt
				  denominated in United States dollars and representing rights conferred by a
				  foreign security must be classified as a foreign investment denominated in
				  foreign currency. The assets of a trust established to satisfy the requirements
				  of RCW
				   48.12.405 through
				  48.12.455, must 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
				government unit referred to in subsections (1)(b) and (c) of this section if
				the obligations shall 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 shall not be obligations
				eligible for investment under this subsection 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
				rating agency recognized by the Securities Valuation Office of the
				NAIC.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-538 - Specific securities provided to a ceding insurer

Current through Register Vol. 24-14, July 15, 2024
A specific security provided to a ceding insurer by an
				  assuming insurer under WAC
				  284-13-540
				  must 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 under WAC
				  284-13-520
				  through 284-13-538.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-53901 - Credit for reinsurance required by law

Current through Register Vol. 24-14, July 15, 2024
Under
				  RCW
				   48.12.435, the commissioner shall allow
				  credit for reinsurance ceded by a domestic insurer to an assuming insurer not
				  meeting the requirements of section 2, chapter 138, Laws of 2021 and
				  RCW
				   48.12.410 through
				  48.12.430,
				  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. As used in this section, "jurisdiction" means state, district or
				  territory of the United States and lawful national
				  government.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-53903 - Credit for reinsurance-Term and universal life insurance reserve financing

Current through Register Vol. 24-14, July 15, 2024
(1) Pursuant to
				section 5, chapter 138, Laws of 2021, the purpose and intent of this section 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 subsection (4) of this section, 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 or more of the
				following characteristics:
(a) Some or all of
				the assets used to secure the reinsurance treaty or to capitalize the reinsurer
				are issued by the ceding insurer or its affiliates;
(b) Some or all of the assets used to secure
				the reinsurance treaty or to capitalize the reinsurer are not unconditionally
				available to satisfy the general account obligations of the ceding insurer;
				or
(c) Some or all of the assets
				used to secure the reinsurance treaty or to capitalize the reinsurer create a
				reimbursement, indemnification or other similar obligation on the part of the
				ceding insurer or any if 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).
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-13 - Assets-Liabilities-Investments and reinsurance › CREDIT FOR REINSURANCE › Section 284-13-540 - Asset or reduction from liability for reinsurance ceded to an unauthorized assuming insurer not meeting the requirements of WAC 284-13-510 through 284-13-53903

Current through Register Vol. 24-14, July 15, 2024
Under
				  RCW
				   48.12.460, the commissioner shall allow a
				  reduction from liability for reinsurance ceded by a domestic insurer to an
				  assuming insurer not meeting the requirements of section 2, chapter 138, Laws
				  of 2021 and
				  RCW
				   48.12.405 through
				  48.12.455,
				  in an amount not exceeding the liabilities carried by the ceding insurer. The
				  reduction shall be in the amount of funds held by or on behalf of the ceding
				  insurer, including funds held in trust for the exclusive benefit of the ceding
				  insurer, under a reinsurance contract with the assuming insurer as security for
				  the payment of obligations under the reinsurance contract. The security must be
				  held in the United States subject to withdrawal solely by, and under the
				  exclusive control of, the ceding insurer, or in the case of a trust, held in a
				  qualified United States financial institution as defined in
				  RCW
				   48.12.465(2). This security
				  may be in the form of any of the following:
(1)
(a)
				Cash;
(b) Securities listed by the
				Securities Valuation Office of the NAIC, including those exempt from filing as
				defined by the purposes and procedures manual of the Securities Valuation
				Office, and qualifying as admitted assets;
(c) Clean, irrevocable, unconditional, and
				"evergreen" letters of credit issued or confirmed by a qualified United States
				institution, as defined in
				RCW
				 48.12.465(1), effective no
				later than December 31 of the year for which filing is being made, and in the
				possession of, or in trust, the ceding insurer on or before the filing date of
				its annual statement. Letters of credit meeting applicable standards of issuer
				acceptability as of the dates of their issuance (or confirmation) shall,
				notwithstanding the issuing (or confirming) institution's subsequent failure to
				meet applicable standards of issuer acceptability, continue to be acceptable as
				security until their expiration, extension, renewal, modification, or
				amendment, whichever first occurs; or
(d) Any other form of security acceptable to
				the commissioner.