Wyoming § 26-5-113 Reduction from liability for reinsurance ceded
by a domestic insurer to an assuming insurer

Wyoming Statutes

§ 26-5-113 — Reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer

Wyoming·Title 26 Insurance Code·Ch. 5 KINDS OF INSURANCE, LIMITS OF RISK, REINSURANCE

(a)A reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of W.S. 26-5-112 shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer, provided that the commissioner may adopt rules and regulations establishing additional requirements relating to or setting forth the valuation of assets or reserve credits, the amount and forms of security supporting reinsurance arrangements described in W.S. 26-5-116 and 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

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(a) A reduction from liability for the reinsurance ceded
by a domestic insurer to an assuming insurer not meeting the
requirements of W.S. 26-5-112 shall be allowed in an amount not
exceeding the liabilities carried by the ceding insurer,
provided that the commissioner may adopt rules and regulations
establishing additional requirements relating to or setting
forth the valuation of assets or reserve credits, the amount and
forms of security supporting reinsurance arrangements described
in W.S. 26-5-116 and 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 United States financial
institution, as defined in W.S. 26-5-114(b). This security may
be in the form of:
(i) Cash;
(ii) 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 NAIC
securities valuation office, and qualifying as admitted assets;
(iii) Clean, irrevocable, unconditional letters of
credit issued or confirmed by a qualified United States
institution no later than December 31 in respect of the year for
which filing is being made, and in the possession of the ceding
insurer on or before the filing date of its annual statement.
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
(iv) Any other form of security acceptable to the
commissioner.

Wyoming § 26-5-113 (Reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.