31 Pa. Code § 163.20 - Other security acceptable to the Commissioner
Current through Register Vol. 52, No. 16, April 16, 2022
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§ 163.20.Other security acceptable to the Commissioner.
(a) A domestic ceding insurer may take credit for reinsurance for funds or letters of credit provided by a noninsurer parent corporation of the ceding insurer if the requirements of section 319.1(b)(4) of the act (40 P. S. § 442.1(b)(4)) are met, as follows:
(1) The funds or letters of credit are held subject to withdrawal by, and under the control of, the ceding insurer.
(2) The type, amount and form of the funds or letters of credit receive the prior approval of the Commissioner.
(b) A domestic ceding insurer may take credit for unencumbered funds deposited with or withheld by the ceding insurer in the United States if the funds are subject to withdrawal, transfer or substitution solely by the domestic ceding insurer, are under the exclusive control of the domestic ceding insurer, and are in the form of cash or securities as identified in section 319.1(b)(1) and (2) of the act.