Wyoming Administrative Code › Agency 044 - Insurance Dept › Sub-Agency 0002 - General Agency, Board or Commission Rules › Chapter 50 - CREDIT FOR REINSURANCE REGULATION › Section 50-8 - Credit for Reinsurance-Certified Reinsurers

Current through July 13, 2024
(a) Pursuant to
				W.S.
				26-5-112(a)(vi), the
				commissioner shall allow credit for reinsurance ceded by a domestic insurer to
				an assuming insurer that has been certified as a reinsurer in this state at all
				times for which statutory financial statement credit for reinsurance is claimed
				under this section. The credit allowed shall be based upon the security held by
				or on behalf of the ceding insurer in accordance with a rating assigned to the
				certified reinsurer by the commissioner. The security shall be in a form
				consistent with the provisions of
				W.S.
				26-5-112(a)(vi) and
				26-5-113,
				and sections
				12,
				13, or
				14 of this chapter. The amount of security
				required in order for full credit to be allowed shall correspond with the
				following requirements:
(i)
Ratings
Security Required
Secure - 1
0%
Secure - 2
10%
Secure - 3
20%
Secure - 4
50%
Secure - 5
75%
Vulnerable - 6
100%
(ii)
				Affiliated reinsurance transactions shall receive the same opportunity for
				reduced security requirements as all other reinsurance transactions.
(iii) The commissioner shall require the
				certified reinsurer to post one hundred percent (100%), for the benefit of the
				ceding insurer or its estate, security upon the entry of an order of
				rehabilitation, liquidation or conservation against the ceding
				insurer.
(iv) In order to
				facilitate the prompt payment of claims, a certified reinsurer shall not be
				required to post security for catastrophe recoverables for a period of one year
				from the date of the first instance of a liability reserve entry by the ceding
				company as a result of a loss from a catastrophic occurrence as recognized by
				the commissioner. The one year deferral period is contingent upon the certified
				reinsurer continuing to pay claims in a timely manner. Reinsurance recoverables
				for only the following lines of business as reported on the NAIC annual
				financial statement related specifically to the catastrophic occurrence will be
				included in the deferral:
(A) Line 1:
				Fire
(B) Line 2: Allied
				Lines
(C) Line 3: Farmowners
				multiple peril
(D) Line 4:
				Homeowners multiple peril
(E) Line
				5: Commercial multiple peril
(F)
				Line 9: Inland Marine
(G) Line 12:
				Earthquake
(H) Line 21: Auto
				physical damage
(v)
				Credit for reinsurance under this section shall apply only to reinsurance
				contracts entered into or renewed on or after the effective date of the
				certification of the assuming insurer. Any reinsurance contract entered into
				prior to the effective date of the certification of the assuming insurer that
				is subsequently amended after the effective date of the certification of the
				assuming insurer, or a new reinsurance contract, covering any risk for which
				collateral was provided previously, shall only be subject to this section with
				respect to losses incurred and reserves reported from and after the effective
				date of the amendment or new contract.
(vi) Nothing in this section shall prohibit
				the parties to a reinsurance agreement from agreeing to provisions establishing
				security requirements that exceed the minimum security requirements established
				for certified reinsurers under this section.