Tenn. Comp. R. & Regs. 0780-01-63-.05 - CREDIT FOR REINSURANCE - REINSURER DOMICILED AND LICENSED IN ANOTHER STATE

(1) Pursuant to T.C.A. § 56-2-208(b)(4) the commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that as of any date on which statutory financial statement credit for reinsurance is claimed:

(a) Is domiciled in (or, in the case of a United States branch of an alien assuming insurer, is entered through) a state that employs standards regarding credit for reinsurance substantially similar to those applicable under T.C.A. §§ 56-2-208 and 56-2-209 and this chapter;

(b) Maintains a surplus as regards policyholders in an amount not less than twenty million dollars ($20,000,000); and

(c) Files a properly executed Form AR-1 (Appendix A of this chapter) with the commissioner as evidence of its submission to this state's authority to examine its books and records.

(2) The provisions of this rule relating to surplus as regards policyholders shall not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system. As used in this rule, "substantially similar" standards means credit for reinsurance standards that the commissioner determines in the commissioner's sole discretion to equal or exceed the standards of T.C.A. §§ 56-2-208 and 56-2-209 and this chapter.

Notes

Tenn. Comp. R. & Regs. 0780-01-63-.05

Original rule filed October 5, 1995; effective December 19, 1995. Repeal and new rules filed March 2, 2018; effective 5/31/2018.

Authority: T.C.A. §§ 56-2-208, 56-2-209, and 56-2-301.