Rule 120-2-78-.05. Credit for ReinsuranceAccredited Reinsurers

1. (1) Pursuant to O.C.G.A. § 33-7-14(a)(2), 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:

   1. (a) File a properly executed Form AR-1 (attached as an exhibit to this regulation) as evidence of its submission to this state's jurisdiction and to this state's authority to examine its books and records;
   2. (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 U.S. branch of an alien assuming insurer, is entered through and licensed to transact insurance or reinsurance in at least one state;
   3. (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
   4. (d) Maintain a surplus as regards policyholders in an amount not less than $20,000,000, 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.

2. (2) If the commissioner determines that the assuming insurer has failed to meet or maintain any of these qualifications, the commissioner may upon written notice and opportunity for hearing, suspend or revoke the accreditation. Credit shall not be allowed a domestic ceding insurer under this section if the assuming insurer's accreditation has been revoked by the commissioner, or if the reinsurance was ceded while the assuming insurer's accreditation was under suspension by the commissioner.

   Credit for Reinsurance Regulation

   FORM AR-1

   CERTIFICATE OF ASSUMING INSURER

   I, _____________________________________________, ______________________________________________________

   (name of officer) (title of officer)

   of _________________________________________________________________________, the assuming insurer (name of assuming insurer)

   under a reinsurance agreement with one or more insurers domiciled in

   _____________________________________________________________________________, hereby certify that (name of state)

   _________________________________________________________________________("Assuming Insurer"):

   (name of assuming insurer)

   1. 1. Submits to the jurisdiction of any court of competent jurisdiction in_______________________________________

      (ceding insurer's state of domicile)

      for the adjudication of any issues arising out of the reinsurance agreement, agrees to comply with all requirements necessary to give such court jurisdiction, and will abide by the final decision of such court or any appellate court in the event of an appeal. Nothing in this paragraph constitutes or should be understood to constitute a waiver of Assuming Insurer's rights to commence an action in any court of competent jurisdiction in the United States, to remove an action to a United States District Court, or to seek a transfer of a case to another court as permitted by the laws of the United States or of any state in the United States. This paragraph is not intended to conflict with or override the obligation of the parties to the reinsurance agreement to arbitrate their disputes if such an obligation is created in the agreement.

   2. 2. Designates the Insurance Commissioner of _______________________________________________________

      (ceding insurer's state of domicile)

      as its lawful attorney upon whom may be served any lawful process in any action, suit or proceeding arising out of the reinsurance agreement instituted by or on behalf of the ceding insurer.

   3. 3. Submits to the authority of the Insurance Commissioner of __________________________________ to examine

      (ceding insurer's state of domicile)

      its books and records and agrees to bear the expense of any such examination.

   4. 4. Submits with this form a current list of insurers domiciled in ___________________________________________

      (ceding insurer's state of domicile)

      reinsured by Assuming Insurer and undertakes to submit additions to or deletions from the list to the Insurance Commissioner at least once per calendar quarter.

      Dated: ___________________________ __________________________________________________

      (name of assuming insurer)

      BY: ______________________________________________

      (name of officer)

      __________________________________________________

      (title of officer)

      © 2012 National Association of Insurance Commissioners

Authority: O.C.G.A. § 33-2-9 and O.C.G.A Chapter 33-63.

History. Original Rule entitled "Other Security" adopted. F. Jul. 9, 1997; eff. July 29, 1997.

Repealed: New Rule entitled "Credit for Reinsurance-Accredited Reinsurers" adopted. F. May 23, 2013; eff. June 12, 2013.