Chapter 8 - Administration Of Assets And Deposits
CHAPTER 8 - ADMINISTRATION OF ASSETS AND DEPOSITS
ARTICLE 1 - ADMINISTRATION OF DEPOSITS
26-8-101. Authorized deposits of insurers.
(a) The following deposits of insurers when made through thecommissioner shall be accepted and held, subject to this chapter:
(i) Deposits required under this code for authority to transactinsurance in this state;
(ii) Deposits of domestic insurers if made pursuant to the lawsof other states, provinces and countries as a requirement for authority totransact insurance therein;
(iii) Deposits in any additional amounts permitted under W.S.26-8-109(b).
26-8-102. Purposes for holding deposits.
(a) Deposits shall be held for purposes as follows:
(i) Deposits made in this state under W.S. 26-3-111 shall beheld in trust for the purposes stated in that section;
(ii) A deposit made in this state by a domestic insurertransacting insurance in another state, province or country, as required by thelaws thereof, shall be held in trust for the protection of all the insurer'spolicyholders or all its policyholders and creditors or for any other purposespecified by those laws;
(iii) A deposit required under W.S. 26-3-130 shall be held forpurposes specified by the commissioner's order pursuant to which the deposit isto be made.
26-8-103. Securities eligible for deposit.
(a) Any deposits required under W.S. 26-3-111 for authority totransact insurance in this state shall consist of any combination ofcertificates of deposit issued by solvent banks, public obligations asdescribed in W.S. 26-7-107(a)(i) or corporate obligations described in W.S.26-7-107(a)(iii).
(b) Any other deposits of a domestic insurer held in this statepursuant to the laws of another state, province or country shall be comprisedof assets described in subsection (a) of this section and of any additionalsecurities required or permitted by those laws, except common stocks, mortgagesof any kind and real property.
(c) Deposits of foreign insurers made in this state under W.S.26-3-130 shall consist of assets the commissioner requires pursuant to thatlaw.
26-8-104. Depository.
(a) Deposits made in this state under this code shall be madethrough and with the commissioner's approval in safe deposit with anestablished safe deposit institution, bank or trust company located in thisstate and selected by the insurer.
(b) If the deposit is kept in safe deposit, the box orcompartment in which are kept the assets and securities comprising the depositshall be placed in a fireproof safe deposit vault and shall require two (2)distinctly differing keys to open it. One (1) of the keys shall at all times bekept by the commissioner and the other key shall at all times be kept by theinsurer. The box or compartment shall not at any time be opened or remain openexcept through the joint action and in the presence of both the commissionerand the insurer's authorized representative.
(c) The insurer shall pay the customary fees for thesafekeeping of its deposit.
26-8-105. Custodial arrangements.
(a) Instead of deposit into safe deposit as provided in W.S.26-8-104, upon the insurer's written request the commissioner may permit theinsurer to make and maintain the deposit under custodial arrangements with thetrust department of an established bank located in Wyoming.
(b) With the commissioner's written advance approval, theinsurer may deposit certain of its securities under custodial arrangements withan established bank or trust company located outside this state, if thecustodial bank or trust company issues original receipts for those securitiesand they are held in safe deposit or custody subject to the requirements ofW.S. 26-8-104(b) or subsection (a) of this section.
(c) The form and terms of all such custodial arrangements shallbe as the commissioner prescribes or approves consistent with the applicableprovisions of this code [title 26].
(d) The insurer shall bear the costs of custodial arrangements.
26-8-106. Commissioner's record of deposits; vouchers as to assetsdeposited.
(a) The commissioner shall:
(i) Give the depositing insurer vouchers as to assets depositedwith him;
(ii) Keep a record of the assets comprising each insurer'sdeposit, showing as far as practical the amount and market value of each itemand each of his transactions relative thereto.
26-8-107. Assignment or transfer of securities deposited tocommissioner.
Anyassets deposited by an insurer and not negotiable by delivery shall be assignedor transferred to the commissioner and his successors in office. Upon releaseof any such security or asset to the insurer, the commissioner shall reassignor transfer the security or asset to the insurer.
26-8-108. Appraisal of securities deposited.
Priorto acceptance for deposit of any asset, or at any time thereafter while sodeposited, the commissioner may have the asset appraised or valued by competentappraisers. The insurer shall bear the reasonable costs of the appraisal orvaluation.
26-8-109. When excess deposits may be required.
(a) If assets deposited by an insurer under this chapter aresubject to material fluctuations in market value, the commissioner may requirethe insurer to deposit and maintain on deposit additional assets in an amountreasonably necessary to assure that the deposit at all times has a market valueof not less than the amount specified under the law by which the deposit isrequired.
(b) An insurer not required to make additional deposits maydeposit assets in an amount exceeding its deposit required or otherwisepermitted under this code by not more than twenty percent (20%) of the requiredor permitted deposit, or twenty thousand dollars ($20,000.00), whichever islarger, for the purpose of absorbing fluctuations in the value of assetsdeposited and to facilitate exchange and substitution of those assets. Duringthe insurer's solvency any excess deposit shall be released to the insurer uponits request. During the insurer's insolvency, an excess deposit shall bereleased only as provided in W.S. 26-8-113(d).
26-8-110. Rights of solvent insurer.
(a) If the insurer is solvent and in compliance with this codeit may:
(i) Demand, receive, sue for and recover the income from theassets deposited;
(ii) Exchange and substitute for the deposited assets, or anypart thereof, other eligible securities and assets of equivalent or greatermarket value; and
(iii) At any reasonable time inspect its deposit.
26-8-111. Levy upon deposit.
Nojudgment creditor or other claimant of an insurer has the right to levy uponany of the assets held in this state as a deposit for the protection of theinsurer's policyholders or creditors or both. As to a deposit made pursuant toW.S. 26-3-111, levy on that deposit is permitted if provided in thecommissioner's order under which the deposit is required.
26-8-112. Deficiency of deposit; failure to cure.
Iffor any reason the market value of an insurer's assets held on deposit in thisstate as required under this code falls below the required amount, the insurershall promptly deposit other or additional assets eligible for depositsufficient to cure the deficiency. If the insurer fails to cure the deficiencywithin twenty (20) days after receipt of notice thereof by registered orcertified mail from the commissioner, the commissioner shall revoke theinsurer's certificate of authority.
26-8-113. Duration and release of deposit.
(a) Any deposit an insurer makes in this state pursuant to thiscode, including assets held in another state under custodial arrangementspermitted by W.S. 26-8-105(b), shall be held as long as:
(i) There is outstanding any liability of the insurer as towhich the deposit was so required; or
(ii) The basis of retaliation exists if the deposit was requiredunder W.S. 26-3-130.
(b) Upon a domestic insurer's request, the commissioner shallreturn to the insurer the whole or any portion of its assets held on deposit ifthe commissioner is satisfied that the assets to be returned are not subject toliability and are not required to be longer held by any provision of law orpurposes of the original deposit. If the insurer has reinsured all itsoutstanding risks in another insurer authorized to transact insurance in thisstate, the commissioner shall deliver the assets and securities to the insurerassuming the risks, upon the domestic insurer's written notice that the assetshave been assigned and transferred to the reinsuring insurer. The notice shallbe accompanied by a verified copy of the assignment or transfer.
(c) The commissioner shall return any deposit made in thisstate by a foreign insurer, if that insurer ceases transacting insurance inthis state and is not subject to any liability in this state for which thedeposit was held.
(d) If the insurer is subject to delinquency proceedings asdefined in W.S. 26-28-101, upon the order of a court of competent jurisdictionthe commissioner shall yield the insurer's assets held on deposit to theinsurer's receiver, conservator, rehabilitator or liquidator, or to any otherproperly designated official who succeeds to the management and control of theinsurer's assets.
(e) No release of deposited assets shall be made except uponapplication to and the written order of the commissioner. The commissioner hasno personal liability for any release of any deposit or part thereof he makesin good faith.
26-8-114. Commissioner's liability.
Ifthe commissioner willfully fails to require, deposit, keep, account and receiptfor, or surrender in the manner by law authorized or required any assets asprovided in this code, he is responsible upon his official bond therefor andsuit may be brought upon his bond by any person injured by the failure.
ARTICLE 2 - HOLDING OF SECURITIES
26-8-201. Definitions.
(a) As used in this article:
(i) "Clearing corporation" means a corporation asdefined in W.S. 34.1-8-102(a)(v), except that with respect to securities issuedby institutions organized or existing under the laws of any foreign country orsecurities used to meet the deposit requirements pursuant to the laws of a foreigncountry as a condition of doing business therein, clearing corporation mayinclude a corporation which is organized or existing under the laws of anyforeign country and is legally qualified under those laws to effecttransactions in securities by computerized book-entry. Clearing corporationalso includes the "treasury/reserve automated debt entry securitiessystem" and the "treasury direct" book-entry securities systemsestablished pursuant to 31 U.S.C. 3100, et seq., 12 U.S.C. part 391 and 5 U.S.C.part 301;
(ii) Repealed By Laws 2007, Ch. 44, 3.
(iii) Repealed By Laws 2007, Ch. 44, 3.
(iv) Repealed By Laws 2007, Ch. 44, 3.
(v) "Security" means as defined in W.S.34.1-8-102(a)(xv);
(vi) "Custodian" means a national bank, state bank ora trust company which participates in a clearing corporation.
26-8-202. Use of book-entry systems.
(a) Notwithstanding any other provision of law, but subject toW.S. 26-24-129, a domestic insurer may deposit or arrange for the deposit ofsecurities held in or purchased for its general account and its separateaccounts in a clearing corporation. When securities are deposited with aclearing corporation, certificates representing securities of the same class ofthe same issuer may be merged and held in bulk in the name of the nominee ofthe clearing corporation with any other securities deposited with the clearingcorporation by any person, regardless of the ownership of the securities, andcertificates representing securities of small denominations may be merged intoone (1) or more certificates of larger denominations. The records of anycustodian through which an insurer holds securities in a clearing corporation,shall at all times show that the securities are held for the insurer and theaccounts in which they are held. Ownership of, and other interests in, thesecurities may be transferred by bookkeeping entry on the books of the clearingcorporation without physical delivery of certificates representing thesecurities.
(b) The commissioner is authorized to promulgate rules andregulations governing the deposit by insurers of securities with clearingcorporations, including establishing standards for national banks, state banksand trust companies to qualify as custodians for insurance company securities.
26-8-203. Deposit of securities by insurers.
Notwithstanding any other provision of law,the securities qualified for deposit under this chapter may be deposited with aclearing corporation. Securities deposited with a clearing corporation and usedto meet the deposit requirements set forth in chapter 3 of this code shall beunder the control of the commissioner and shall not be withdrawn by the insurerwithout the approval of the commissioner. Any insurer holding securities inthis manner shall provide to the commissioner evidence issued by its custodianthrough which the insurer has deposited the securities in a clearingcorporation in order to establish that the securities are actually recorded inan account in the name of the custodian and that the records of the custodianreflect that the securities are held subject to the order of the commissioner.
26-8-204. Deposit of securities by foreign insurers.
Notwithstanding any other provision of law,securities eligible for deposit under the insurance laws of this state relatingto deposit of securities by an insurer as a condition of commencing orcontinuing to do an insurance business in this state may be deposited with aclearing corporation. Securities deposited with a clearing corporation and usedto meet the deposit requirements under the insurance laws of this state shallbe under the control of the commissioner and shall not be withdrawn by theinsurer without the approval of the commissioner. Any insurer holdingsecurities in this manner shall provide to the commissioner evidence issued byits custodian in order to establish that the securities are actually recordedin an account in the name of the custodian and evidence that the records of thecustodian reflect that the securities are held subject to the order of thecommissioner.