044-50 Wyo. Code R. §§ 50-11 - Reduction from Liability for Reinsurance Ceded to an Unauthorized Assuming Insurer not Meeting the Requirements of Sections 4 Through 10
(a) Pursuant to
W.S.
26-5-113 the commissioner shall allow a
reduction from liability for reinsurance ceded by a domestic insurer to an
assuming insurer not meeting the requirements of
W.S.
26-5-112 in an amount not exceeding the
liabilities carried by the ceding insurer. 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 exclusive benefit of the ceding insurer, under a reinsurance
contract with such assuming insurer as security for the payment of obligations
under the reinsurance contract. The security shall be 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 any of the following:
(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 Securities Valuation
Office, and qualifying as admitted assets.
(iii) Clean, irrevocable, unconditional, and
"evergreen" letters of credit issued or confirmed by a qualified United States
institution, as defined in
W.S.
26-5-114(a) effective no
later than December 31 of the year for which 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. 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 any other form of security acceptable to the
commissioner.
Notes
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