Section 58-14-9 - Requirements for reinsurer to be accredited.
58-14-9. Requirements for reinsurer to be accredited. Credit shall be allowed if the reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this state. For a reinsurer to be accredited, it shall:
(1) File with the director evidence of its submission to this state's jurisdiction;
(2) Submit to this state's authority to examine its books and records;
(3) Be licensed to transact insurance or reinsurance in at least one state, or in the case of a United States branch of an alien assuming insurer, be entered through and licensed to transact insurance or reinsurance in at least one state; and
(4) File annually with the director a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement.
The director, after reviewing the documents submitted, may approve or disapprove the reinsurer. If no action is taken by the director within ninety days of the insurer's application to provide reinsurance, the reinsurer may provide reinsurance in this state if it maintains a surplus as regards policyholders in an amount which is not less than twenty million dollars. If the director approves the application, the reinsurer may do business in this state if it maintains a surplus as regards policyholders in an amount not less than one million dollars. The director may set the surplus requirements.
No credit may be allowed a domestic ceding insurer if the assuming insurers' accreditation has been revoked by the director after notice and hearing.
To qualify as an accredited reinsurer, an assuming insurer shall meet all of the requirements of this section. If the director determines that the assuming insurer has failed to continue to meet any of these qualifications, he may upon written notice and hearing revoke accreditation.
The director may deny accreditation if the director determines that accreditation would not be in the best interest of the ceding insurer and policyholders.
Source: SL 1992, ch 344, § 3.