Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 05 - ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS
Chapter 31.05.07 - Life and Health Reinsurance Agreements
Section 31.05.07.04 - Taking Reserve Credit or Establishing Assets for Reinsurance Ceded
Current through Register Vol. 51, No. 19, September 20, 2024
A. Allowed. Notwithstanding the prohibitions contained in Regulation .05 of this chapter, an insurer may, with the prior approval of the Commissioner, take the reserve credit and establish the assets for reinsurance ceded as the Commissioner considers consistent with the Insurance Article of the Annotated Code of Maryland, the Code of Maryland Regulations, and any actuarial interpretations or standards adopted by the Commissioner.
B. Limitation on Amount of Credit or Assets. An insurer may not take reserve credit or establish assets for reinsurance ceded in an amount that is greater than the underlying reserve of the ceding insurer supporting the policy obligations transferred under the reinsurance agreement.