This text of Indiana § 27-6-10.1-3 (Reinsurance ceded to an assuming insurer not meeting statutory
requirements) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Asset or Reduction from Liability for
Reinsurance Ceded by a Domestic Insurer to an Assuming Insurer not
Meeting the Requirements of Section 2 of this chapter. An asset or a
reduction from liability for the reinsurance ceded by a domestic insurer
to an assuming insurer not meeting the requirements of Section 2 of
this chapter shall be allowed in an amount not exceeding the liabilities
carried by the ceding insurer; provided further, that the insurance
commissioner may adopt by regulation pursuant to Section 5B of this
chapter specific additional requirements relating to or setting forth:
(1)the valuation of assets or reserve credits;
(2)the amount and forms of
security supporting reinsurance arrangements described in Section 5B
of this chapter; and/or (3) the circumstances pursuant to wh
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Asset or Reduction from Liability for
Reinsurance Ceded by a Domestic Insurer to an Assuming Insurer not
Meeting the Requirements of Section 2 of this chapter. An asset or a
reduction from liability for the reinsurance ceded by a domestic insurer
to an assuming insurer not meeting the requirements of Section 2 of
this chapter shall be allowed in an amount not exceeding the liabilities
carried by the ceding insurer; provided further, that the insurance
commissioner may adopt by regulation pursuant to Section 5B of this
chapter specific additional requirements relating to or setting forth: (1)
the valuation of assets or reserve credits; (2) the amount and forms of
security supporting reinsurance arrangements described in Section 5B
of this chapter; and/or (3) the circumstances pursuant to which credit
will be reduced or eliminated. The reduction shall be in the amount of
funds held by or on behalf of the ceding insurer, including funds held
in trust for the ceding insurer, under a reinsurance contract with the
assuming insurer as security for the payment of obligations thereunder,
if the security is held in the United States subject to withdrawal solely
by, and under the exclusive control of, the ceding insurer; or, in the
case of a trust, held in a qualified U.S. financial institution, as defined
in Section 4B of this chapter. This security may be in the form of:
A. cash;
B. securities listed by the Securities Valuation Office of the
NAIC, including those deemed exempt from filing as defined by
the Purposes and Procedures Manual of the Securities Valuation
Office, and qualifying as admitted assets;
C. (1) clean, irrevocable, unconditional letters of credit, issued or
confirmed by a qualified U.S. financial institution, as defined in
Section 4A of this chapter, effective no later than December 31 of
the year for which the filing is being made, and in the possession
of, or in trust for, the ceding insurer on or before the filing date of
its annual statement;
(2) letters of credit meeting applicable standards of issuer
acceptability as of the dates of their issuance (or confirmation)
shall, notwithstanding the issuing (or confirming) institution's
subsequent failure to meet applicable standards of issuer
acceptability, continue to be acceptable as security until their
expiration, extension, renewal, modification, or amendment,
whichever first occurs; or
D. any other form of security acceptable to the insurance
commissioner.