§ 22:550.30 — Affiliated reinsurance companies

Louisiana § 22:550.30

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§550.30. Affiliated reinsurance companies
A. An affiliated reinsurance company is subject to the provisions of this Subpart and
applicable department rules and regulations. If there is a conflict between the provisions of
this Subpart and the provisions of this Section, the provisions of this Section shall control.
B. As used in this Section, the following definitions apply:
(1) "Affiliated reinsurance company" means a company licensed by the
commissioner pursuant to this Subpart to reinsure risks ceded by one or more ceding insurers
that are affiliated companies. Subject to the prior approval of the commissioner, not more
than ten percent of the risks reinsured may be ceded by ceding insurers that are not affiliated
companies.
(2) "Ceding insurer" means an insurance company approved by the commissioner
and licensed or otherwise authorized to transact the business of insurance or reinsurance in
its state or country of domicile, which cedes risk to an affiliated reinsurance company
pursuant to a reinsurance contract.
(3) "Organizational documents" means the affiliated reinsurance company's articles
of incorporation and bylaws and such other documents subject to approval by the
commissioner.
(4) "Reinsurance contract" means a contract between an affiliated reinsurance
company and a ceding insurer in which the affiliated reinsurance company agrees to provide
reinsurance to the ceding insurer.
C.(1) An affiliated reinsurance company shall only reinsure the risks of a ceding
insurer. An affiliated reinsurance company may cede the risks assumed under a reinsurance
contract to another reinsurer, subject to the prior approval of the commissioner.
(2) In conjunction with the issuance of a certificate of authority to an affiliated
reinsurance company, the commissioner may issue an order that includes any provisions,
terms, and conditions regarding the organization, licensing, and operation of the affiliated
reinsurance company that are deemed appropriate by the commissioner and that are not
inconsistent with the provisions of this Subpart.
(3) To qualify for a certificate of authority, an affiliated reinsurance company is
subject to, in addition to the requirements of R.S. 22:550.5, 550.7, 550.13, and 550.14,
disclosing of all of the following:
(a) The source and form of the affiliated reinsurance company's capital and surplus.
(b) The investment policy of the affiliated reinsurance company, which shall provide
for a diversified investment portfolio both as to type and issue and shall include a
requirement for liquidity and for the reasonable preservation, administration, and
management of such assets with respect to the risks associated with any reinsurance
transactions.
(c) Copies of all agreements and documentation, including reinsurance agreements
unless otherwise approved by the commissioner, and any other statements or documents
required by the commissioner to evaluate the affiliated reinsurance company's application
for a certificate of authority.
D.(1) An affiliated reinsurance company may be incorporated as a stock insurer with
its capital divided into shares, or in such other organizational form as may be approved by
the commissioner.
(2) An affiliated reinsurance company's organizational documents shall limit the
affiliated reinsurance company's authority to the transaction of the business of insurance or
reinsurance and to those activities that the affiliated reinsurance company conducts to
accomplish its purposes as expressed in this Subpart.
E. An affiliated reinsurance company shall not be issued a certificate of authority
unless it possesses and thereafter maintains unimpaired paid-in capital and surplus of not less
than five million dollars. The commissioner may prescribe additional capital and surplus
based upon the type, volume, and nature of reinsurance business transacted. Except as
otherwise provided in this Section, the provisions of risk-based capital provided for in
Subpart C of Part III of this Chapter, R.S. 22:611 et seq., apply in full to an affiliated
reinsurance company.
F.(1) An affiliated reinsurance company shall only reinsure the risks of a ceding
insurer, pursuant to a reinsurance contract. An affiliated reinsurance company shall not issue
a contract of insurance or a contract for assumption of risk or indemnification of loss other
than a reinsurance contract.
(2) The reinsurance contract shall contain all provisions reasonably required or
approved by the commissioner, which requirements shall take into account the laws
applicable to the ceding insurer in this Title regarding the ceding insurer's taking credit for
the reinsurance provided under the reinsurance contract.
(3) An affiliated reinsurance company may cede risks assumed through a reinsurance
contract to one or more reinsurers through the purchase of reinsurance, subject to the prior
approval of the commissioner. Except as otherwise provided in this Section, the provisions
for reinsurance of risks apply in full to an affiliated reinsurance company.
(4) Unless otherwise approved in advance by the commissioner, a reinsurance
contract shall not contain any provision for payment by the affiliated reinsurance company
in discharge of its obligations under the reinsurance contract to any person other than the
ceding insurer or any receiver of the ceding insurer.
(5) An affiliated reinsurance company shall notify the commissioner immediately of
any action by a ceding insurer or any other person to foreclose on or otherwise take
possession of collateral provided by the affiliated reinsurance company to secure any
obligation of the affiliated reinsurance company.
G.(1) The assets of an affiliated reinsurance company shall be preserved and
administered by or on behalf of the affiliated reinsurance company to satisfy the liabilities
and obligations of the affiliated reinsurance company incident to the reinsurance contract and
other related agreements.
(2) The commissioner may prohibit or limit any investment that threatens the
solvency or liquidity of the affiliated reinsurance company unless the investment is otherwise
approved in its plan of operation or in an order issued to the affiliated reinsurance company
pursuant to Subsection C of this Section.
H.(1) For the purposes of R.S. 22:550.21, both of the following apply:
(a) Each affiliated reinsurance company shall file its report in the form required by
examinations and reports in this Title, and each affiliated reinsurance company shall comply
with the requirements set forth in National Association of Insurance Commissioners filing
requirements provided for in this Title.
(b) An affiliated reinsurance company shall report using statutory accounting
principles in accordance with the National Association of Insurance Commissioner's
Accounting Practices and Procedures Manual. Reporting shall be in the general form and
context, as approved by, and shall contain any other information required by, the National
Association of Insurance Commissioners, with any useful or necessary modifications or
adaptions thereof approved or accepted by the commissioner for the type of insurance and
kinds of insurers to be reported upon, and as supplemented by additional information
required by the commissioner.
(2) Unless otherwise approved in advance by the commissioner, an affiliated
reinsurance company shall maintain its books, records, documents, accounts, vouchers, and
agreements in this state. An affiliated reinsurance company shall make its books, records,
documents, accounts, vouchers, and agreements available for inspection by the commissioner
at any time. An affiliated reinsurance company shall keep its books and records in a manner
that its financial condition, affairs, and operations can be readily ascertained so that the
commissioner may readily verify its financial statements and determine its compliance with
this Subpart.
(3) Unless otherwise approved in advance by the commissioner, all books, records,
documents, accounts, vouchers, and agreements shall be preserved and kept available in this
state for the purpose of examination and inspection and until such time as the commissioner
approves the destruction or other disposition of such books, records, documents, accounts,
vouchers, and agreements. If the commissioner approves the keeping outside this state of the
items listed in this Paragraph, the affiliated reinsurance company shall maintain in this state
a complete and true copy of each such item. Books, records, documents, accounts, vouchers,
and agreements may be photographed, reproduced on film, or electronically stored and
reproduced.
(4) The provisions of annual financial reporting and qualified accountants of this Title
apply in full to an affiliated reinsurance company in accordance with this Subpart.
I. Except as otherwise provided in this Section, the provisions of holding companies
and subsidiaries in this Title apply in full to an affiliated reinsurance company.
J. Except as otherwise provided in this Section, the provisions of corporate
governance and disclosure in this Title apply in full to an affiliated reinsurance company.
K. Except as otherwise provided in this Section, the provisions of own risk and
solvency assessment in this Title apply in full to an affiliated reinsurance company.
L. Except as otherwise provided in this Section, the provisions of requirements for
actuarial opinions in this Title apply in full to an affiliated reinsurance company.
M.(1) The examination provisions of R.S. 22:1981 and the confidentiality provisions
of this Title and the Louisiana Public Records Law, R.S. 44:1 et seq., apply to all documents,
materials, and other information, including confidential and privileged documents,
examination reports, preliminary examination reports or results, working papers, recorded
information, and copies of any of these produced or obtained by, or disclosed to the
commissioner or any other person in the course of an examination made pursuant to this
Subpart.
(2) In furtherance of the commissioner's regulatory duties, the commissioner may
share and receive documents, materials, or other information pursuant to relevant provisions
of confidentiality and information-sharing agreements in accordance with this Subpart.

Legislative History

Acts 2025, No. 313, §2.