20-1094.01. Reserve requirements

A. An unaffiliated credit life and disability reinsurer shall secure liabilities that are assumed under a reinsurance agreement subject to approval pursuant to this article in any of the following:

1. With funds withheld.

2. With funds that are maintained in a trust fund that complies with section 20-261.02 and in an amount that is not less than one hundred ten per cent of the amount of the liabilities assumed.

3. With clean, irrevocable and unconditional letters of credit that comply with section 20-261.02, subsection B.

B. For the purposes of this section, the director shall value securities in the manner prescribed in sections 20-511 and 20-512.

20-1094.01. Reserve requirements

A. An unaffiliated credit life and disability reinsurer shall secure liabilities that are assumed under a reinsurance agreement subject to approval pursuant to this article in any of the following:

1. With funds withheld.

2. With funds that are maintained in a trust fund that complies with section 20-261.02 and in an amount that is not less than one hundred ten per cent of the amount of the liabilities assumed.

3. With clean, irrevocable and unconditional letters of credit that comply with section 20-261.02, subsection B.

B. For the purposes of this section, the director shall value securities in the manner prescribed in sections 20-511 and 20-512.