31 Pa. Code § 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.
Notes
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