379.1342. Trust fund required for branch captive insurance company.
Trust fund required for branch captive insurance company.
379.1342. In the case of a branch captive insurance company, assecurity for the payment of liabilities attributable to the branchoperations, the director shall require that a trust fund, funded by anirrevocable letter of credit or other acceptable asset, be established andmaintained in the United States for the benefit of United Statespolicyholders and United States ceding insurers under insurance policiesissued or reinsurance contracts issued or assumed by the branch captiveinsurance company through its branch operations. The amount of suchsecurity shall be no less than the amount set forth in subdivision (1) ofsubsection 1 of section 379.1306 and the reserves on such insurancepolicies or such reinsurance contracts, including reserves for losses,allocated loss adjustment expenses, incurred but not reported losses, andunearned premiums with regard to business written through the branchoperations; provided, however, the director may permit a branch captiveinsurance company that is required to post security for loss reserves onbranch business by its reinsurer to reduce the funds in the trust accountrequired by this section by the same amount so long as the security remainsposted with the reinsurer. If the form of security selected is a letter ofcredit, the letter of credit shall be established by or issued or confirmedby a bank chartered in this state or a member bank of the Federal ReserveSystem.
(L. 2007 S.B. 215)