California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 3 - Annual Statements
Premiums in Course of Collection
Section 2303.12 - Transfer of Risk - Property and Casualty
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
This section applies only to property and casualty insurance.
(a) Transfer of risk shall be determined by application of the risk transfer requirements of the NAIC Accounting Guidance. In the review of a reinsurance agreement to determine transfer of risk, all contracts between the domestic ceding insurer, the reinsurer, and their respective affiliates, may, in the Commissioner's discretion, be reviewed to evaluate contractual features that may (1) limit the amount of insurance risk to which the reinsurer is subject under the agreement, or (2) delay the timely reimbursement of claims by the reinsurer.
(b) A denial of statement credit for failure of risk transfer shall be made in the manner prescribed in Section 2303.18(c) of this article.
1. New section
filed 10-24-2006; operative 11-23-2006 (Register 2006, No. 43).
2. Change
without regulatory effect amending subsection (a) filed 3-25-2015 pursuant to
section 100, title 1, California Code of
Regulations (Register 2015, No. 13).
3. Amendment of subsection (b) filed
11-27-2017; operative 1-1-2018 (Register 2017, No.
48).
Note: Authority cited: Section 922.8, Insurance Code; CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989); and 20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994). Reference: Sections 922.3 and 923, Insurance Code.
