Wyoming Administrative Code › Agency 044 - Insurance Dept › Sub-Agency 0002 - General Agency, Board or Commission Rules › Chapter 69 - TERM AND UNIVERSAL LIFE INSURANCE RESERVE FINANCING › Section 69-7 - Requirements Applicable to Covered Policies to Obtain Credit for Reinsurance; Opportunity for Remediation

Current through July 13, 2024
(a) Requirements: Subject to the exemptions
				described in section 4 and the provisions of section 7(b), credit for
				reinsurance shall be allowed with respect to ceded liabilities pertaining to
				Covered Policies pursuant to
				W.S.
				26-5-112 or
				26-5-113 if, and only if, in
				addition to all other requirements imposed by law or regulation, the following
				requirements are met on a treaty-by-treaty basis:
(i) The ceding insurer's statutory policy
				reserves with respect to the Covered Policies are established in full and in
				accordance with the applicable requirements of
				W.S.
				26-6-201
et seq.
and related
				regulations and actuarial guidelines, and credit claimed for any reinsurance
				treaty subject to this regulation does not exceed the proportionate share of
				those reserves ceded under the contract;
(ii) The ceding insurer determines the
				Required Level of Primary Security with respect to each reinsurance treaty
				subject to this regulation and provides support for its calculation as
				determined to be acceptable to the commissioner;
(iii) Funds consisting of Primary Security,
				in an amount at least equal to the Required Level of Primary Security, are held
				by or on behalf of the ceding insurer, as security under the reinsurance treaty
				within the meaning of
				W.S.
				26-5-113, on a funds withheld, trust, or
				modified coinsurance basis;
(iv)
				Funds consisting of Other Security, in an amount at least equal to any portion
				of the statutory reserves as to which Primary Security is not held pursuant to
				paragraph (iii) above, are held by or on behalf of the ceding insurer as
				security under the reinsurance treaty within the meaning of
				W.S.
				26-5-113; and
(v) Any trust used to satisfy the
				requirements of this section 7 shall comply with all of the conditions and
				qualifications of Chapter 50, Section 11, of the Wyoming Insurance Department
				regulations, except that:
(A) Funds
				consisting of Primary Security or Other Security held in trust, shall for the
				purposes identified in section 6(b), be valued according to the valuation rules
				set forth in section 6(b), as applicable;
(B) There are no affiliate investment
				limitations with respect to any security held in trust if the security is not
				needed to satisfy the requirements of section 7(a)(iii);
(C) The reinsurance treaty shall prohibit
				withdrawals or substitutions of trust assets that would leave the fair market
				value of the Primary Security within the trust (when aggregated with Primary
				Security outside the trust that is held by or on behalf of the ceding insurer
				in the manner required by section 7(a)(iii) ) below one hundred two percent
				(102%) of the level required by section 7(a)(iii) at the time of the withdrawal
				or substitution; and
(D) The
				determination of reserve credit under Chapter 50, Section 11(e) of the Wyoming
				Insurance Department regulations shall be determined according to the valuation
				rules set forth in section 6(b), as applicable; and
(vi) The reinsurance treaty has been approved
				by the commissioner.