Credit for reinsurance may not be allowed by the Commissioner as an admitted asset or deduction from liability to any ceding insurer for a reinsurance contract entered into with a reinsurer under this chapter after the adoption of this regulation unless the reinsurance contract includes:

1. A. An insolvency clause, in accordance with Insurance Article, §5-905(a), Annotated Code of Maryland; and

2. B. A provision under which the reinsurer, if an unauthorized reinsurer, has:

   1. (1) Submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States;
   2. (2) Agreed to comply with all requirements necessary to give the court or panel jurisdiction;
   3. (3) Designated an agent to receive service of process; and
   4. (4) Agreed to abide by the final decision of the court or panel.
3. C. Includes a proper reinsurance intermediary clause, if applicable, which stipulates that the credit risk for the intermediary is carried by the assuming insurer.

Authority: Insurance Article, §§1-101(jj), 2-109, 2-205, 2-209, and 5-901—5-917, Annotated Code of Maryland

Effective date:

Regulations .01—.08 adopted as an emergency provision effective June 17, 1993 (20:14 Md. R. 1164); adopted permanently effective October 11, 1993 (20:20 Md. R. 1571)

Regulations .02B and .08F amended, and Regulations .09—.17 adopted, as an emergency provision effective December 19, 1997 (25:2 Md. R. 73); adopted permanently effective June 15, 1998 (25:12 Md. R. 947)

Chapter recodified from COMAR 09.30.97 to COMAR 31.05.08 effective September 7, 1998 (25:18 Md. R. 1439)

Regulations .01—.17 repealed and new Regulations .01—.24 adopted effective June 5, 2006 (33:11 Md. R. 953)

Chapter revised effective August 18, 2014 (41:16 Md. R. 947)

Regulation .02B amended effective October 1, 2022 (49:19 Md. R. 868)

Regulation .24 amended effective July 1, 2021 (48:13 Md. R. 510)

Regulation .28D amended effective December 11, 2023 (50:24 Md. R. 1043)

Regulation .29 adopted effective October 1, 2022 (49:19 Md. R. 868)