1. (1) The purpose of this rule is to:

   1. (a) recognize that a licensed insurer may enter into a reinsurance agreement that yields legitimate relief to a ceding insurer; and
   2. (b) establish criteria for a licensed insurer to enter into a reinsurance agreement.

2. (2)(a) This rule applies to:

   1. (i) a domestic life insurer;

      1. (ii) a domestic accident and health insurer;
      2. (iii) a foreign life insurer not subject to a similar rule in its domiciliary state;
      3. (iv) a foreign accident and health insurer not subject to a similar rule in its domiciliary state; and
      4. (v) a property and casualty insurer with respect to its accident and health insurance business.

   2. (b) This rule does not apply to:

      1. (i) assumption reinsurance;
      2. (ii) yearly renewable term reinsurance; and
      3. (iii) certain nonproportional reinsurance, such as stop-loss or catastrophe reinsurance.

KEY: insurance law

Date of Last Change: March 16, 2022

Notice of Continuation: December 13, 2021

Authorizing, and Implemented or Interpreted Law: 31A-2-201