Utah Admin. Code R590-238-11 - Reinsurance

(1) A company may take credit for reserves on risks ceded to a reinsurer subject to the following limitations:

(a) credit may not be allowed for reinsurance when the reinsurance contract does not result in the transfer of the risk or liability to the reinsurer; and

(b) credit may not be allowed, as an asset or a deduction from liability, to a ceding insurer for reinsurance unless the reinsurance is payable by the assuming insurer based on the liability of the ceding insurer under the contract reinsured without diminution because of the insolvency of the ceding insurer.

(2) Reinsurance is effected through a written agreement of reinsurance setting forth the terms, provisions, and conditions governing the reinsurance.

(3) The commissioner may require that complete copies of all reinsurance treaties and contracts be filed and approved.

Notes

Utah Admin. Code R590-238-11

Amended by Utah State Bulletin Number 2015-20, effective 9/25/2015 Adopted by Utah State Bulletin Number 2024-01, effective 12/22/2023 Amended by Utah State Bulletin Number 2024-18, effective 9/10/2024