§ 26.1-31.2-03 — Qualified United States financial institutions

North Dakota § 26.1-31.2-03

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-31.2: Reinsurance Credit

Text

1. Cash;
2. Securities listed by the securities valuation office of the national association of
insurance commissioners, including those securities deemed exempt from filing as
defined by the purposes and procedures manual of the securities valuation office, and
qualifying as admitted assets;
3. a. Clean, irrevocable, unconditional letters of credit issued or confirmed by a
qualified United States institution, as defined in subsection 1 of section
26.1-31.2-03, effective no later than December thirty-first 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; or
b. Letters of credit meeting applicable standards of issuer acceptability as of the
dates of their issuance or confirmation must, 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
4. Any other form of security acceptable to the commissioner.
26.1-31.2-03. Qualified United States financial institutions.
1. For purposes of subsection 3 of section 26.1-31.2-02, a "qualified United States
financial institution" means an institution that:
a. Is organized, or in case of a United States office of a foreign banking
organization, is licensed, under the laws of the United States or any state thereof;
b. Is regulated, supervised, and examined by United States federal or state
authorities having regulatory authority over banks and trust companies; and
c. Has been determined by either the commissioner, or the securities valuation
office of the national association of insurance commissioners, to meet such
standards of financial condition and standing as are considered necessary and
appropriate to regulate the quality of financial institutions whose letters of credit
will be acceptable to the commissioner.
2. A "qualified United States financial institution" means, for purposes of those provisions
of this chapter specifying those institutions that are eligible to act as a fiduciary of a
trust, an institution that:
a. Is organized, or in the case of a United States branch or agency office of a
foreign banking organization, is licensed, under the laws of the United States or
any state thereof and has been granted authority to operate with fiduciary
powers; and
b. Is regulated, supervised, and examined by federal or state authorities having
regulatory authority over banks and trust companies.