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IC 27-6-10-2
"Ceding insurer"
Sec. 2. As used in this chapter, "ceding insurer" has the meaning
set forth in IC 27-6-1.1-1.
As added by P.L.116-1994, SEC.54.
IC 27-6-10-2.2
"Certified reinsurer"
Sec. 2.2. As used in this chapter, "certified reinsurer" means an
assuming insurer that is certified by the commissioner under section
11.5 of this chapter.
IC 27-6-10-3
"Commissioner"
Sec. 3. As used in this chapter, "commissioner" refers to the
insurance commissioner appointed under IC 27-1-1-2.
As added by P.L.116-1994, SEC.54.
IC 27-6-10-4
"Department"
Sec. 4. As used in this chapter, "department" refers to the
department of insurance created under IC 27-1-1-1.
As added by P.L.116-1994, SEC.54.
IC 27-6-10-5
"Qualified United States financial institution" as used in
IC 27-6-10-14(c)(3)
Sec. 5. As used in section 14(c)(3) of this chapter, "qualified
United States financial institution" means an institution that:
(1) is organized, or in the case of a United States office of a
foreign banking organization licensed, under the laws of the
United States or any state thereof;
(2) is regulated, supervised, and examined by United States
federal or state authorities having regulatory authority over
banks and trust companies; and
(3) has been determined by the commissioner or the Securities
Valuation Office of the National Association of Insurance
Commissioners to meet the standards of financial condition and
standing as are considered necessary and appropriate to regulate
the quality of financial institutions whose letters of credit will
be acceptable to the commissioner.
As added by P.L.116-1994, SEC.54. Amended by P.L.81-2012,
SEC.24.
IC 27-6-10-6
"Qualified United States financial institution" as used in
IC 27-6-10-11(a) and IC 27-6-10-14(b)
Sec. 6. As used in sections 11(a) and 14(b) of this chapter,
"qualified United States financial institution" means an institution
that:
(1) is organized, or in the case of a United States branch or
agency office of a foreign banking organization, licensed under
the laws of the United States or any state thereof and has been
granted authority to operate with fiduciary powers; and
(2) is regulated, supervised, and examined by federal or state
authorities having regulatory authority over banks and trust
companies.
As added by P.L.116-1994, SEC.54.
IC 27-6-10-8
Assuming insurer licensed to transact insurance or reinsurance
Sec. 8. As provided in section 7 of this chapter, credit for
reinsurance shall be allowed a domestic ceding insurer when the
reinsurance is ceded to an assuming insurer that is licensed to
transact insurance or reinsurance in Indiana.
As added by P.L.116-1994, SEC.54.
IC 27-6-10-9
Credit for reinsurance ceded to accredited reinsurer
Sec. 9. As provided in section 7 of this chapter, credit for
reinsurance shall be allowed a domestic ceding insurer when the
reinsurance is ceded to an assuming insurer that is an accredited
reinsurer in Indiana.
As added by P.L.116-1994, SEC.54. Amended by P.L.81-2012,
SEC.26.
IC 27-6-10-10
Assuming insurer domiciled or entering through another state
Sec. 10. As provided in section 7 of this chapter, credit shall be
allowed a domestic ceding insurer when the reinsurance is ceded to
an assuming insurer:
(1) that:
(A) is domiciled in; or
(B) 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 this chapter;
(2) that:
(A) maintains a surplus as regards policyholders in an
amount not less than twenty million dollars ($20,000,000);
and
(B) submits to the authority of Indiana to examine the
insurer's books and records;
provided, however, that the requirement of clause (A) does not
apply to reinsurance ceded and assumed pursuant to pooling
arrangements among insurers in the same holding company
system; and
(3) that complies with section 12 of this chapter.
As added by P.L.116-1994, SEC.54. Amended by P.L.81-2012,
SEC.27.
IC 27-6-10-11
Assuming insurer maintenance of trust fund; requirements for
form and content of trust; reports
Sec. 11. (a) As provided in section 7 of this chapter and subject to
section 13.3 of this chapter, credit for reinsurance shall be allowed
a domestic ceding insurer when the reinsurance is ceded to an
assuming insurer that maintains a trust fund in a qualified United
States financial institution (as defined in section 6 of this chapter) for
the payment of the valid claims of its United States ceding insurers,
their assigns, and successors in interest, and the assuming insurer
complies with section 12 of this chapter. In order for the
commissioner to determine the sufficiency of the trust fund, the
assuming insurer shall report annually to the commissioner
substantially the same information as that required to be reported by
licensed insurers on the National Association of Insurance
Commissioners' annual statement form. The assuming insurer shall
submit to the examination of the assuming insurer's books and
records by the commissioner and shall bear the expense of the
examination. A trust maintained under this section shall comply with
the provisions of this section.
(b) The form of a trust described in subsection (a) and any
amendments to the trust must:
(1) have been approved by:
(A) the commissioner of the state where the trust is
domiciled; or
(B) the commissioner of another state who, under the terms
of the trust instrument, has accepted principal regulatory
oversight of the trust; and
(2) be filed with the commissioner of every state in which the
ceding insurer beneficiaries of the trust are domiciled.
(c) The following requirements apply to the following categories
of assuming insurer:
(1) In the case of a trust of a single assuming insurer, the
following apply:
(A) The trust fund shall consist of funds in trust in an
amount not less than the assuming insurer's liabilities
attributable to reinsurance ceded by United States ceding
insurers.
(B) Except as provided in clause (C), the assuming insurer
shall maintain a trusteed surplus of not less than twenty
million dollars ($20,000,000).
(C) After the assuming insurer has, for at least three (3) full
years, permanently discontinued underwriting new business
secured by the trust and the commissioner that has principal
regulatory oversight of the trust has performed a risk
assessment:
(i) that may involve an actuarial review, including an
independent analysis of reserves and cash flows; and
(ii) that considers all material risk factors, including the
lines of business involved, the stability of the incurred loss
estimates, and the effect of the surplus requirements
specified in clause (B) on the assuming insurer's liquidity
or solvency;
and determined that a surplus level that is less than the
amount required by clause (B) is adequate for the protection
of United States ceding insurers, policyholders, and
claimants in light of reasonably foreseeable adverse loss
development, the commissioner may authorize a reduction
in the trusteed surplus amount required by clause (B).
However, the amount required by clause (B) may not be
reduced to an amount less than thirty percent (30%) of the
assuming insurer's liabilities that are attributable to
reinsurance ceded by United States ceding insurers covered
by the trust.
(2) In the case of a group including incorporated and individual
unincorporated underwriters that is an assuming insurer, the
following apply:
(A) For reinsurance ceded under reinsurance agreements
with an inception, amendment, or renewal date after
December 31, 1992, the trust shall consist of a trusteed
account in an amount not less than the respective
underwriters' several liabilities attributable to business ceded
by United States ceding insurers to any underwriter of the
group.
(B) Notwithstanding any other provision of this chapter, for
reinsurance ceded under reinsurance agreements with an
inception date before January 1, 1993, and not amended or
renewed after December 31, 1992, the trust shall consist of
a trusteed account in an amount not less than the respective
underwriters' several insurance and reinsurance liabilities
attributable to business written in the United States.
(C) In addition to the trusts described in clauses (A) and (B),
the group shall maintain in trust a trusteed surplus of which
one hundred million dollars ($100,000,000) shall be held
jointly for the benefit of United States ceding insurers of any
member of the group for all years of account.
(D) The incorporated members of the group shall not be
engaged in any business other than underwriting as a
member of the group and shall be subject to the same level
of regulation and solvency control by the group's domiciliary
regulator as are the unincorporated members.
Not more than ninety (90) days after the group's financial
statements are due to be filed with the group's domiciliary
regulator, the group shall provide to the commissioner an
annual certification by the group's domiciliary regulator of the
solvency of each underwriter member. However, if a
certification is unavailable, the group shall provide to the
commissioner financial statements of each underwriter member
of the group, prepared by independent public accountants.
(3) In the case of a group of incorporated underwriters under
common administration that is an assuming insurer, the group:
(A) must have continuously transacted an insurance
business outside the United States for at least three (3)
years immediately before making application for
accreditation;
(B) shall maintain an aggregate policyholders' surplus of
at least ten billion dollars ($10,000,000,000);
(C) shall maintain a trust fund in an amount not less than the
group's several liabilities attributable to business ceded by
United States ceding insurers to any member of the group
under reinsurance contracts issued in the name of the group;
(D) shall maintain a joint trusteed surplus of which one
hundred million dollars ($100,000,000) shall be held jointly
for the benefit of United States ceding insurers of any
member of the group as additional security for any such
liabilities; and
(E) shall, not more than ninety (90) days after the group's
financial statements are due to be filed with the group's
domiciliary regulator, make available to the commissioner:
(i) an annual certification of each underwriter member's
solvency by the member's domiciliary regulator; and
(ii) financial statements of each underwriter member of the
group prepared by the member's independent public
accountant.
(d) The trust instrument of a trust shall provide that contested
claims are valid and enforceable upon the final order of any court
with jurisdiction in the United States.
(e) A trust shall vest legal title to the trust's assets in the trustees
of the trust for the benefit of the assuming insurer's United States
ceding insurers, their assigns, and successors in interest.
(f) A trust and the assuming insurer shall be subject to
examination as determined by the commissioner.
(g) A trust shall remain in effect for as long as the assuming
insurer has outstanding obligations due under the reinsurance
agreements subject to the trust.
(h) Not later than February 28 of each year the trustee of a trust
permitted under this section shall report in writing to the
commissioner the following information:
(1) The balance of the trust.
(2) A listing of the trust's investments at the preceding year end.
(3) A certification of the date of termination of the trust, if
applicable, or a certification that the trust shall not expire
before the following December 31.
(i) Credit may only be permitted under this section if an assuming
insurer also complies with section 12 of this chapter.
As added by P.L.116-1994, SEC.54. Amended by P.L.81-2012,
SEC.28.
IC 27-6-10-11.5
Credit for reinsurance ceded to certified reinsurer; certification
requirements; qualified jurisdictions; ratings
Sec. 11.5. (a) As provided in section 7 of this chapter and subject
to section 13.3 of this chapter, credit for reinsurance shall be allowed
a domestic ceding insurer when the reinsurance is ceded to an
assuming insurer that:
(1) has been certified as a certified reinsurer by the
commissioner in Indiana; and
(2) secures the assuming insurer's obligations as required by this
section.
(b) An assuming insurer must do all of the following to be eligible
for certification under this section:
(1) Be domiciled and licensed to engage in insurance or
reinsurance business in a jurisdiction that has been determined
under subsection (d) or (e) by the commissioner to be a
qualified jurisdiction.
(2) Maintain minimum capital and surplus, or the equivalent, in
an amount determined by the commissioner in rules adopted
under IC 4-22-2.
(3) Maintain financial strength ratings from at least two (2)
rating agencies that the commissioner determines acceptable
under rules adopted under IC 4-22-2.
(4) Agree to submit to the jurisdiction of Indiana.
(5) Appoint the commissioner as the assuming insurer's agent
for service of process in Indiana.
(6) Agree to provide security for one hundred percent (100%)
of the assuming insurer's liabilities attributable to reinsurance
ceded by United States ceding insurers if the assuming insurer
resists enforcement of a final United States judgment.
(7) Agree to meet information filing requirements determined
by the commissioner, at the time of application for certification
and on an ongoing basis.
(8) Satisfy any other requirements specified by the
commissioner.
(c) An association that includes incorporated and individual
unincorporated underwriters may be certified under this section if all
of the following requirements are met:
(1) The association must meet all of the requirements described
in subsection (b).
(2) The association must satisfy the association's minimum
capital and surplus requirements through the capital and surplus
equivalents (net of liabilities) of the association and the
association's members, including a joint central fund:
(A) that may be applied to any unsatisfied obligation of the
association or any of the association's members; and
(B) in an amount determined by the commissioner to provide
adequate protection.
(3) The incorporated members of the association:
(A) may not engage in any business other than underwriting
as a member of the association; and
(B) are subject to the same level of regulation and solvency
control by the association's domiciliary regulator as the level
that applies to the unincorporated members of the
association.
(4) Not more than ninety (90) days after the association's
financial statements are due to be filed with the association's
domiciliary regulator, the association must provide to the
commissioner:
(A) an annual certification by the association's domiciliary
regulator of the solvency; or
(B) if a certification is unavailable, financial statements
prepared by the independent public accountant;
of each underwriter member of the association.
(d) The commissioner shall create and publish a list of non-United
States jurisdictions that the commissioner determines are qualified
jurisdictions. The following requirements apply to the
commissioner's creation, publication, maintenance, and use of the list
created and published under this subsection:
(1) In determining whether a jurisdiction is a qualified
jurisdiction, the commissioner shall:
(A) initially and on an ongoing basis, evaluate the
appropriateness and effectiveness of the reinsurance
supervisory system of the jurisdiction;
(B) consider the rights, benefits, and extent of reciprocal
recognition afforded by the jurisdiction to reinsurers
licensed and domiciled in the United States;
(C) consider the list of qualified jurisdictions that is
published by the National Association of Insurance
Commissioners committee process; and
(D) consider any other factors that the commissioner
considers necessary, including any of the following:
(i) The framework under which the assuming insurer is
regulated.
(ii) The structure and authority of the domiciliary regulator
with respect to solvency requirements and financial
surveillance.
(iii) The substance of financial and operating standards for
assuming insurers in the domiciliary jurisdiction.
(iv) The form and substance of financial reports required
to be filed or made public by reinsurers in the domiciliary
jurisdiction, and the accounting principals used.
(v) The domiciliary regulator's willingness to cooperate
with United States regulators and the commissioner.
(vi) The history of performance by assuming insurers in
the domiciliary jurisdiction.
(vii) Documented evidence of substantial problems in the
domiciliary jurisdiction with the enforcement of final
United States judgments.
(viii) Relevant international standards or guidance with
respect to mutual recognition of reinsurance supervision
adopted by the International Association of Insurance
Supervisors or a successor organization.
(2) A jurisdiction considered for qualification under this
subsection must:
(A) agree to share information and cooperate with the
commissioner with respect to all certified reinsurers that are
domiciled in the jurisdiction; and
(B) not have been determined by the commissioner not to
have adequately and promptly enforced final United States
judgments and arbitration awards;
to be determined to be a qualified jurisdiction.
(3) If the commissioner determines that a jurisdiction is
qualified, but the qualified jurisdiction does not appear on the
National Association of Insurance Commissioners list described
in subdivision (1)(C), the commissioner must thoroughly
document the commissioner's justification for the determination
in accordance with criteria established by the commissioner in
rules adopted under IC 4-22-2.
(e) The commissioner:
(1) shall consider a United States jurisdiction that meets the
requirements for accreditation under the National Association
of Insurance Commissioners financial standards and
accreditation program to be a qualified jurisdiction; and
(2) may, instead of revocation, indefinitely suspend a certified
reinsurer's certification under this section if the certified
reinsurer's domiciliary jurisdiction ceases to be a qualified
jurisdiction.
(f) The commissioner shall:
(1) after considering the financial strength ratings assigned to
the certified reinsurer by rating agencies considered acceptable
to the commissioner according to rules adopted under
IC 4-22-2, assign a rating to each certified reinsurer; and
(2) publish a list of all certified reinsurers and the rating
assigned to each certified reinsurer under subdivision (1).
(g) A certified reinsurer shall secure obligations assumed from
United States ceding insurers under this section at a level consistent
with the rating assigned by the commissioner under subsection (f),
as follows:
(1) For a domestic ceding insurer to qualify for full financial
statement credit for reinsurance ceded to a certified reinsurer,
the certified reinsurer shall maintain security:
(A) in a form acceptable to the commissioner and consistent
with section 14 of this chapter; or
(B) in a multibeneficiary trust under section 11 of this
chapter.
(2) If a certified reinsurer:
(A) maintains a trust to fully secure the certified reinsurer's
obligations under section 11 of this chapter; and
(B) chooses to secure the certified reinsurer's obligations
incurred as a certified reinsurer under this section in the
form of a multibeneficiary trust;
the certified reinsurer shall maintain separate trust accounts for
the certified reinsurer's obligations under section 11 of this
chapter and for the certified reinsurer's obligations incurred
under reinsurance agreements issued or renewed as a certified
reinsurer with reduced security under this section or comparable
laws of other United States jurisdictions.
(3) If a certified reinsurer described in subdivision (2) has not
agreed:
(A) in the language of the trust; and
(B) under an agreement with the commissioner that has
principal regulatory oversight of each trust account
described in subdivision (2);
to fund, upon termination of any of the trust accounts and from
the surplus of the terminated trust account, any deficiency of
any of the other trust accounts, the commissioner shall revoke
the certified reinsurer's certification under this section.
(4) The minimum trusteed surplus requirements of section 11 of
this chapter do not apply with respect to a multibeneficiary trust
that is maintained by a certified reinsurer for the purpose of
securing obligations incurred by the certified reinsurer under
this section. However, the multibeneficiary trust must maintain
a minimum trusteed surplus of at least ten million dollars
($10,000,000).
(5) If the security for obligations incurred by a certified
reinsurer under this section is insufficient, the commissioner:
(A) shall reduce the allowable credit by an amount in
proportion to the deficiency; and
(B) may impose further reductions in the allowable credit if
the commissioner determines that a material risk exists that
the certified reinsurer's obligations will not be paid in full
when the obligations are due.
(6) If the certification of an assuming insurer under this section
is revoked, suspended, inactivated, or voluntarily surrendered,
the commissioner shall, for purposes of reinsurance in force:
(A) except as provided in clause (B), regulate the assuming
insurer as if the assuming insurer were a certified reinsurer;
and
(B) require that the assuming insurer provide security for
one hundred percent (100%) of the assuming insurer's
obligations attributable to the reinsurance in force.
However, clause (B) does not apply to an assuming insurer after
certification is suspended or inactivated if, after suspension or
inactivation, the commissioner assigns a new rating to the
assuming insurer that is higher than the rating assigned under
subsection (f)(1) before certification was suspended or
inactivated.
(h) If an assuming insurer that applies for certification under this
section is a certified reinsurer in a jurisdiction that is accredited by
the National Association of Insurance Commissioners, the
commissioner may:
(1) defer to the:
(A) accredited jurisdiction's certification of the assuming
insurer; and
(B) rating assigned to the assuming insurer by the accredited
jurisdiction; and
(2) consider the assuming insurer a certified reinsurer in Indiana
without the assuming insurer meeting the requirements of
subsection (b)(2) and (b)(3).
(i) A certified reinsurer that ceases to assume new business in
Indiana may request that the commissioner allow the certified
reinsurer to maintain certification in inactive status to continue to
qualify for the reduction in security for the certified reinsurer's
in-force business in Indiana. If inactive status is granted by the
commissioner, the certified reinsurer shall continue to comply with
this section and the commissioner shall, after considering the reasons
that the certified reinsurer has ceased assuming new business in
Indiana, assign a new rating to the certified reinsurer.
(j) If a certified reinsurer continues throughout the year to pay
claims in a timely manner, the certified reinsurer is not, for one (1)
year after the date of the first liability reserve entry by a ceding
company resulting from a loss from a catastrophic occurrence
recognized by the commissioner, required to post security for the
catastrophe recoverables in the following lines of business (as
reported on the National Association of Insurance Commissioners
annual financial statement and specifically related to the catastrophic
occurrence):
(1) Fire.
(2) Allied lines.
(3) Farmowners multiple peril.
(4) Homeowners multiple peril.
(5) Commercial multiple peril.
(6) Inland marine.
(7) Earthquake.
(8) Motor vehicle physical damage.
As added by P.L.81-2012, SEC.29.
IC 27-6-10-12
Assuming insurers not licensed, accredited, or certified in Indiana
Sec. 12. If an assuming insurer is not licensed, accredited, or
certified to transact insurance or reinsurance in Indiana, the credit
permitted by sections 10 and 11 of this chapter shall not be allowed
unless the assuming insurer agrees in the reinsurance agreements to
all of the following:
(1) That in the event of the failure of the assuming insurer to
perform the assuming insurer's obligations under the terms of
the reinsurance agreement, the assuming insurer, at the request
of the ceding insurer, shall:
(A) submit to the jurisdiction of any court with jurisdiction
in any state of the United States;
(B) comply with all requirements necessary to give the court
described in clause (A) jurisdiction; and
(C) abide by the final decision of the court or of any
appellate court in the event of an appeal.
(2) To designate the commissioner or an attorney as its true and
lawful attorney upon whom may be served any lawful process
in any action, suit, or proceeding instituted by or on behalf of
the ceding insurer.
This section is not intended to conflict with or override the obligation
of the parties to a reinsurance agreement to arbitrate their disputes,
if such an obligation is created in the agreement.
As added by P.L.116-1994, SEC.54. Amended by P.L.81-2012,
SEC.30.
IC 27-6-10-13.3
Assuming insurer failure to meet requirements; requirements for
exception to disallowance of credit
Sec. 13.3. If an assuming insurer does not meet the requirements
of section 8, 9, or 10 of this chapter, a credit allowed under section
11 or 11.5 of this chapter is not allowed unless the assuming insurer
agrees in the trust agreements under section 11 or 11.5 of this chapter
to the following:
(1) That if the trust fund is inadequate because the:
(A) trust fund contains less than the amount required by
section 11(c) of this chapter; or
(B) grantor of the trust is declared insolvent or placed into
receivership, rehabilitation, liquidation, or similar
proceedings under the law of the grantor's domiciliary state
or country;
the trustee shall comply with an order of the commissioner that
has regulatory oversight of the trust or of a court with
jurisdiction directing the trustee to transfer all assets of the trust
fund to the commissioner that has regulatory oversight of the
trust.
(2) That:
(A) the assets of the trust will be distributed by, and claims
will be filed with and valued by, the commissioner that has
regulatory oversight of the trust; and
(B) the assets of the trust will be distributed under, and
claims will be filed and valued under, the laws of the
domiciliary state of the trust that apply to liquidation of
domestic insurers.
(3) That if the commissioner that has regulatory oversight of the
trust determines that any part of the assets of the trust fund is
unnecessary to satisfy the claims of the United States ceding
insurers of the grantor of the trust, the commissioner that has
regulatory oversight of the trust shall return the unnecessary
part of the assets to the trustee for distribution under the trust
agreement.
(4) That the grantor of the trust waives any legal right under
United States law that is inconsistent with this section.
As added by P.L.81-2012, SEC.32.
IC 27-6-10-13.8
Ceding insurer exposure management requirements
Sec. 13.8. (a) A ceding insurer shall manage the ceding insurer's
reinsurance recoverables in proportion to the ceding insurer's own
book of business. A domestic ceding insurer shall, not more than
thirty (30) days after reinsurance recoverables from any single
assuming insurer or group of affiliated assuming insurers:
(1) exceeds; or
(2) is determined by the domestic ceding insurer to be likely to
exceed;
fifty percent (50%) of the domestic ceding insurer's last reported
surplus to policyholders, notify the commissioner concerning the
actual or likely exposure.
(b) A ceding insurer shall diversify the ceding insurer's
reinsurance program. A domestic ceding insurer shall, not more than
thirty (30) days after:
(1) ceding to any single assuming insurer or group of affiliated
assuming insurers reinsurance in excess of; or
(2) determining that the reinsurance ceded to any single
assuming insurer or group of affiliated assuming insurers is
likely to exceed;
twenty percent (20%) of the domestic ceding insurer's gross written
premium in the preceding calendar year, notify the commissioner
concerning the actual or likely exposure.
(c) A notice required by subsection (a) or (b) must include
evidence that the domestic ceding insurer is safely managing the
actual or likely exposure.
As added by P.L.81-2012, SEC.34.
IC 27-6-10-14
Reduction from liability for reinsurance ceded to assuming insurer
not meeting statutory requirements; amount; security
Sec. 14. (a) An asset or a reduction from liability for the
reinsurance ceded by a domestic insurer to an assuming insurer not
meeting the requirements of section 8, 9, 10, 11, 11.5, 12, 13, 13.3,
13.6, or 13.8 of this chapter shall be allowed in an amount not
exceeding the liabilities carried by the ceding insurer.
(b) The reduction permitted under subsection (a) shall be in the
amount of funds held by or on behalf of the ceding insurer, including
funds held in trust for the ceding insurer, under a reinsurance
contract with the assuming insurer as security for the payment of
obligations thereunder. The security must be held:
(1) in the United States subject to withdrawal solely by, and
under the exclusive control of, the ceding insurer; or
(2) in the case of a trust, in a qualified United States financial
institution (as defined in section 6 of this chapter).
(c) The security described under subsection (b) may be in the
following forms:
(1) Cash.
(2) Securities listed by the Securities Valuation Office of the
National Association of Insurance Commissioners, including
securities that are considered exempt from filing (as defined by
the Purposes and Procedures Manual of the Securities Valuation
Office), and qualifying as admitted assets.
(3) Clean, irrevocable, unconditional letters of credit:
(A) issued or confirmed by a qualified United States
financial institution (as defined in section 5 of this chapter);
(B) effective not later than December 31 in the year for
which the filing is being made; and
(C) in the possession of or in trust for the ceding insurer on
or before the filing date of the ceding insurer's annual
statement.
Letters of credit that meet applicable standards of issuer
acceptability as of the dates of their issuance (or confirmation)
shall, notwithstanding the issuing (or confirming) institution's
subsequent failure to meet applicable standards of issuer
acceptability, continue to be acceptable as security until the
earlier of their expiration, extension, renewal, modification, or
amendment.
(4) Any other form of security acceptable to the commissioner.
As added by P.L.116-1994, SEC.54. Amended by P.L.2-1995,
SEC.105; P.L.81-2012, SEC.35.
IC 27-6-10-15
Implementation of chapter
Sec. 15. The commissioner may adopt rules under IC 4-22-2 to
implement this chapter.
As added by P.L.116-1994, SEC.54.
IC 27-6-10-16
Repealed
(Repealed by P.L.81-2012, SEC.36.)