Illinois Administrative Code
Title 50 - INSURANCE
Part 1104 - CREDIT FOR REINSURANCE CEDED
Section 1104.45 - Credit for Reinsurance - Certified Reinsurers
Current through Register Vol. 48, No. 12, March 22, 2024
a) Pursuant to Section 173.1 of the Code, the Director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that has been certified as a reinsurer in Illinois at all times for which statutory financial statement credit for reinsurance is claimed under this Section. The credit allowed shall be based upon the security held by or on behalf of the ceding insurer in accordance with a rating assigned to the certified reinsurer by the Director. The security shall be in a form consistent with the provisions of Section 173.1 of the Code. The amount of security required for full credit to be allowed shall correspond with the following requirements:
b) Certification Procedure
c) The certified reinsurer shall provide and maintain security in an amount sufficient to avoid the imposition of any financial statement penalty on the ceding insurer under Section 173.1(1)(C-5)(8)(f) of the Code for reinsurance ceded to the certified reinsurer. Reinsurance contracts entered into or renewed under this Section 1104.45 shall include this requirement as a proper funding clause in addition to the clauses required under Section 1104.100.