Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
031 - BUREAU OF INSURANCE
Chapter 160 - ELIGIBLE SURPLUS LINES INSURERS SUMMARY REQUIREMENTS FOR ELIGIBILITY STATUS TO TRANSACT "EXPORT LINES" OF INSURANCE REGARDING RISKS RESIDENT, LOCATED OR TO BE PERFORMED IN MAINE
Section 031-160-5 - Financial requirements and claim settlements

Universal Citation: 02 ME Code Rules § 031-160-5

Current through 2024-38, September 18, 2024

A. All companies shall demonstrate before approval to the eligible list of surplus lines insurers that they have afforded fair treatment to their policyholders, and

B. That they possess capital and/or surplus adequate to their obligations, can meet basic minimum financial requirements hereinafter and, if an alien insurer, the insurer shall provide evidence of funds on deposit in the United States as specified in subsection 2 infra.

1. Minimum capitalization requirements for insurers to be considered eligible shall be:

STOCK INSURERS _ MUTUAL & RECIPROCAL INSURERS

Minimum Capital Minimum Basic

Stock _ Free Surplus Surplus _ Free Surplus _

$500,000 $500,000 $500,000 $500,000

2. For all unauthorized insurers deemed eligible to accept surplus lines placements there shall be maintained, if the insurer is an alien company, deposit funds as set out hereafter:

a. Alien insurers shall maintain funds in at least an amount of $1 million, such funds to be held in trust for the exclusive benefit of the policyholders in the United States with whom the policy contracts were effectuated.

b. Trusteed assets shall be valued and shall qualify as admissible assets and take the form of tangible assets generally and readily convertible to cash in secondary markets.

c. These deposits shall where practicable be maintained in a Federal Reserve Bank in a State of the United States. The insurer shall file, or cause to be filed, a statement of fund balance periodically on at least a semi-annual calendar basis by the trustee bank on behalf of the insurer.

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