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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsNovember 2014

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(18 Del.C. §§311 and 915; 29 Del.C. Ch. 101)
The proposed amended regulation supports the Credit for Reinsurance Act (18 Del.C. §§910-916) and makes two changes for national accreditation purposes (see 8.2.4.8 and 8.2.7.4). The Delaware Code authority for the change is 18 Del.C. §311 and §915; and 29 Del.C. Ch. 101.
Any person can file written comments, suggestions, briefs, and compilations of data or other materials concerning the proposed amendment. Any written submission in response to this notice and relevant to the proposed regulation must be received by the Department of Insurance no later than 4:30 p.m. EST, Monday, December 1, 2014. Any such requests should be directed to:
This regulation is promulgated pursuant to the authority granted by 18 Del.C. §§311 and 915 of the Insurance Code; and 29 Del.C. Ch. 101.
The purpose of this regulation is to set forth rules and procedural requirements that the Commissioner deems necessary to carry out the provisions of 18 Del.C. §§910-916. (the “Reinsurance Act”). The actions and information required by this regulation are declared to be necessary and appropriate in the public interest and for the protection of the ceding insurers in this state.
7.2.4 The trust fund for a group of incorporated insurers under common administration, whose members possess aggregate policyholders surplus of $10,000,000,000 (calculated and reported in substantially the same manner as prescribed by the annual statement instructions and Accounting Practices and Procedures Manual of the NAIC) and which has continuously transacted an insurance business outside the United States for at least three (3) years immediately prior to making application for accreditation, shall:
8.2.4.8 For certified reinsurers not domiciled in the U.S., audited financial statements (audited U.S. GAAP basis if available, audited IFRS basis statements or other audited statements filed with the reinsurer’s domestic supervisory authority in a jurisdiction recognized by the Commissioner as a qualified jurisdiction pursuant to Subsection 8.3 of this Section are allowed but must include an audited footnote reconciling equity and net income to a U.S. GAAP basis, or, with the permission of the Commissioner, audited IFRS statements with reconciliation of equity and net income to U.S. GAAP certified by an officer of the company), regulatory filings, and actuarial opinion (as filed with the non-U.S. jurisdiction supervisor). Upon the initial application for certification, the Commissioner will consider audited financial statements for the last three (3) years filed with its non-U.S. jurisdiction supervisor;
8.2.7.4 Annually, audited financial statements (audited U.S. GAAP basis if available, audited IFRS basis statements or other audited statements filed with the reinsurer’s domestic supervisory authority in a jurisdiction recognized by the Commissioner as a qualified jurisdiction pursuant to Subsection 8.3 of this Section are allowed but must include an audited footnote reconciling equity and net income to a U.S. GAAP basis, or, with the permission of the Commissioner, audited IFRS statements with reconciliation of equity and net income to U.S. GAAP certified by an officer of the company), regulatory filings, and actuarial opinion (as filed with the certified reinsurer’s supervisor). Upon the initial certification, audited financial statements for the last three (3) years filed with the certified reinsurer’s supervisor;
8.2.8.4 Upon revocation of the certification of a certified reinsurer by the Commissioner, the assuming insurer shall be required to post security in accordance with Section 10.0 in order for the ceding insurer to continue to take credit for reinsurance ceded to the assuming insurer. If funds continue to be held in trust in accordance with Section 7.0, the Commissioner may allow additional credit equal to the ceding insurer’s pro rata share of such funds, discounted to reflect the risk of uncollectibility and anticipated expenses of trust administration. Notwithstanding the change of a certified reinsurer’s rating or revocation of its certification, a domestic insurer that has ceded reinsurance to that certified reinsurer may not be denied credit for reinsurance for a period of three (3) months for all reinsurance ceded to that certified reinsurer, unless the reinsurance is found by the Commissioner to be at high risk of uncollectibility.
This regulation shall become effective on the 1513th day of August January, 20135.
Last Updated: December 31 1969 19:00:00.
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