20-1092. Control of assets; definition
A. The director may require that a domestic life and disability stock reinsurer
designate and comply with either or a combination of the following:
1. That pursuant to all written agreements with ceding insurers, assets in an
amount up to the net reserves established by such reinsurer be deposited by or withheld
from such reinsurer as security for the payment of obligations under any reinsurance
agreement if such assets are held subject to withdrawal by, and under the control of, any
ceding insurer.
2. That pursuant to all written agreements, assets in an amount up to the net
reserves established by the reinsurer be placed in a trust account or custodial account
with a bank which is a member of the federal reserve system located in the United States
or in any bank located in this state.
B. For the purposes of this section, "net reserves" means the gross policy and
claim reserves established by the reinsurer less policy and claim reserves retroceded
and, on risks retained by the reinsurer, less policy loans, net deferred and uncollected
premiums, and premiums due and unpaid.
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