(a) This Article doesnot apply to those reserve assets of an insurer that are held, deposited,pledged, hypothecated, or otherwise encumbered as provided in this section tosecure, offset, protect, or meet those policyholder‑related liabilitiesof the insurer that are established, incurred, or required under the provisionsof a reinsurance agreement whereby the insurer has reinsured the insurancepolicy liabilities of a ceding insurer, provided:
(1) The ceding insurerand the reinsurer are both licensed to transact business in this State;
(2) Pursuant to awritten agreement between the ceding insurer and the reinsurer, reserve assetssubstantially equal to the policyholder‑related liabilities required tobe established by the reinsurer on the reinsured business are either (i)deposited by or are withheld from the reinsurer and are in the custody of theceding insurer as security for the payment of the reinsurer's obligations underthe reinsurance agreement, and such assets are held subject to withdrawal byand under the separate or joint control of the ceding insurer, or (ii)deposited and held in trust account for that purpose and under those conditionswith a qualified United States financial institution.
(b) The Commissionerhas the right to examine any of such assets, reinsurance agreements, or depositarrangements at any time in accordance with his authority to make examinationsof insurers as conferred by other provisions of this Chapter.
(c) For purposes ofsubdivision (a)(2) of this section, "qualified United States financialinstitution" means an institution that:
(1) Is organized or, inthe case of a United States office of a foreign banking organization, licensedunder the laws of the United States or any of its states;
(2) Is regulated,supervised, and examined by United States federal or state authorities havingregulatory authority over banks and trust companies; and
(3) Has been determinedby either the Commissioner or the Securities Valuation Office of the NAIC tomeet the standards of financial condition and standing considered necessary andappropriate to regulate the quality of financial institutions who serve astrustees. (1985,c. 327, s. 1; 1993, c. 504, s. 9; 2001‑223, s. 13.4; 2005‑215, s.25.)
(a) This Article doesnot apply to those reserve assets of an insurer that are held, deposited,pledged, hypothecated, or otherwise encumbered as provided in this section tosecure, offset, protect, or meet those policyholder‑related liabilitiesof the insurer that are established, incurred, or required under the provisionsof a reinsurance agreement whereby the insurer has reinsured the insurancepolicy liabilities of a ceding insurer, provided:
(1) The ceding insurerand the reinsurer are both licensed to transact business in this State;
(2) Pursuant to awritten agreement between the ceding insurer and the reinsurer, reserve assetssubstantially equal to the policyholder‑related liabilities required tobe established by the reinsurer on the reinsured business are either (i)deposited by or are withheld from the reinsurer and are in the custody of theceding insurer as security for the payment of the reinsurer's obligations underthe reinsurance agreement, and such assets are held subject to withdrawal byand under the separate or joint control of the ceding insurer, or (ii)deposited and held in trust account for that purpose and under those conditionswith a qualified United States financial institution.
(b) The Commissionerhas the right to examine any of such assets, reinsurance agreements, or depositarrangements at any time in accordance with his authority to make examinationsof insurers as conferred by other provisions of this Chapter.
(c) For purposes ofsubdivision (a)(2) of this section, "qualified United States financialinstitution" means an institution that:
(1) Is organized or, inthe case of a United States office of a foreign banking organization, licensedunder the laws of the United States or any of its states;
(2) Is regulated,supervised, and examined by United States federal or state authorities havingregulatory authority over banks and trust companies; and
(3) Has been determinedby either the Commissioner or the Securities Valuation Office of the NAIC tomeet the standards of financial condition and standing considered necessary andappropriate to regulate the quality of financial institutions who serve astrustees. (1985,c. 327, s. 1; 1993, c. 504, s. 9; 2001‑223, s. 13.4; 2005‑215, s.25.)
(a) This Article doesnot apply to those reserve assets of an insurer that are held, deposited,pledged, hypothecated, or otherwise encumbered as provided in this section tosecure, offset, protect, or meet those policyholder‑related liabilitiesof the insurer that are established, incurred, or required under the provisionsof a reinsurance agreement whereby the insurer has reinsured the insurancepolicy liabilities of a ceding insurer, provided:
(1) The ceding insurerand the reinsurer are both licensed to transact business in this State;
(2) Pursuant to awritten agreement between the ceding insurer and the reinsurer, reserve assetssubstantially equal to the policyholder‑related liabilities required tobe established by the reinsurer on the reinsured business are either (i)deposited by or are withheld from the reinsurer and are in the custody of theceding insurer as security for the payment of the reinsurer's obligations underthe reinsurance agreement, and such assets are held subject to withdrawal byand under the separate or joint control of the ceding insurer, or (ii)deposited and held in trust account for that purpose and under those conditionswith a qualified United States financial institution.
(b) The Commissionerhas the right to examine any of such assets, reinsurance agreements, or depositarrangements at any time in accordance with his authority to make examinationsof insurers as conferred by other provisions of this Chapter.
(c) For purposes ofsubdivision (a)(2) of this section, "qualified United States financialinstitution" means an institution that:
(1) Is organized or, inthe case of a United States office of a foreign banking organization, licensedunder the laws of the United States or any of its states;
(2) Is regulated,supervised, and examined by United States federal or state authorities havingregulatory authority over banks and trust companies; and
(3) Has been determinedby either the Commissioner or the Securities Valuation Office of the NAIC tomeet the standards of financial condition and standing considered necessary andappropriate to regulate the quality of financial institutions who serve astrustees. (1985,c. 327, s. 1; 1993, c. 504, s. 9; 2001‑223, s. 13.4; 2005‑215, s.25.)
