California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 3 - Annual Statements
Premiums in Course of Collection
Section 2303.13 - Contract Requirements for Statement Credit
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Credit for reinsurance may be claimed by a domestic ceding insurer only for an agreement that meets the requirements of this section.
(b) A reinsurance agreement of a domestic insurer ceding property and casualty business shall expressly state that it constitutes the entire agreement between the parties with respect to the business covered by the agreement, except for separate contracts expressly disclosed within the agreement or in an exhibit incorporated by reference. The entire agreement clause may provide that it shall not be construed to limit the admissibility of evidence regarding the formation, interpretation, purpose or intent of the reinsurance agreement.
(c) The agreement shall contain an acceptable insolvency clause, conforming to the requirements of Code Section 922.2(a)(2).
(d) The agreement shall meet the credit for reinsurance requirements of the NAIC Accounting Guidance that are not inconsistent with the requirements of this article.
(e) Reinsurance of individual risks pursuant to facultative certificates issued by the reinsurer shall not be required to comply with subdivision (b) of this section.
(f) A denial of statement credit 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 subsections (a) and (b), repealing former
subsection (c), relettering subsections and amending newly designated subsection (c)
filed 3-25-2015 pursuant to section
100, title 1, California Code of
Regulations (Register 2015, No. 13).
3. Amendment of subsection (f) 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 922.2, 922.3 and 923, Insurance Code.
