Illinois Administrative Code
Title 50 - INSURANCE
Part 1104 - CREDIT FOR REINSURANCE CEDED
Section 1104.60 - Reduction from Liability for Reinsurance Ceded to an Unauthorized Assuming Insurer
Current through Register Vol. 48, No. 12, March 22, 2024
Pursuant to Section 173.1(2) of the Code, the Director shall allow a reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Section 173.1(1) of the Code in an amount not exceeding the liabilities carried by the ceding insurer. The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the exclusive benefit of the ceding insurer, under a reinsurance contract with that assuming insurer as security for the payment of obligations thereunder. The security must be held in the U.S. subject to withdrawal solely by, and under the exclusive control of, the ceding insurer or, in the case of a trust, held in a qualified U.S. financial institution as defined in Section 173.1(3)(B) of the Code.
a) This security may be in the form of any of the following:
b) An admitted asset or a reduction from liability for reinsurance ceded to an unauthorized assuming insurer pursuant to subsections (a)(1), (2) and (3) shall be allowed only when the requirements of Section 1104.70, 1104.80 or 1104.90 are met.