Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 129.00 - Life And Health Reinsurance Agreements
Section 129.02 - Accounting Requirements
Current through Register 1531, September 27, 2024
(1) No insurer subject to 211 CMR 129.00 shall, for reinsurance ceded, reduce any liability or establish any asset in any financial statement filed with the Division if, by the terms of the reinsurance agreement, in substance or effect, any of the following conditions exist:
Risk categories:
+ - Significant 0 - Insignificant
RISK CATEGORY
a |
b |
c |
d |
e |
f |
|
Health Insurance - other than LTC/LTD* |
+ |
0 |
+ |
0 |
0 |
0 |
Health Insurance - LTC/LTD* |
+ |
0 |
+ |
+ |
+ |
0 |
Immediate Annuities |
0 |
+ |
0 |
+ |
+ |
0 |
Single Premium Deferred Annuities |
0 |
0 |
+ |
+ |
+ |
+ |
Flexible Premium Deferred Annuities |
0 |
0 |
+ |
+ |
+ |
+ |
Guaranteed Interest Contracts |
0 |
0 |
0 |
+ |
+ |
+ |
Other Annuity Deposit Business |
0 |
0 |
+ |
+ |
+ |
+ |
Single Premium Whole Life |
0 |
+ |
+ |
+ |
+ |
+ |
Traditional Non-par Permanent |
0 |
+ |
+ |
+ |
+ |
+ |
Traditional Non-par Term |
0 |
+ |
+ |
0 |
0 |
0 |
Traditional Par Permanent |
0 |
+ |
+ |
+ |
+ |
+ |
Traditional Par Term |
0 |
+ |
+ |
0 |
0 |
0 |
Adjustable Premium Permanent |
0 |
+ |
+ |
+ |
+ |
+ |
Indeterminate Premium Permanent |
0 |
+ |
+ |
+ |
+ |
+ |
Universal Life Flexible Premium |
0 |
+ |
+ |
+ |
+ |
+ |
Universal Life Fixed Premium |
0 |
+ |
+ |
+ |
+ |
+ |
Universal Life Fixed Premium dump-in premiums allowed |
0 |
+ |
+ |
+ |
+ |
+ |
*LTC = Long Term Care Insurance
LTD = Long Term Disability Insurance
- Health Insurance - LTC/LTD
- Traditional Non-par Permanent
- Traditional Par Permanent
- Adjustable Premium Permanent
- Indeterminate Premium Permanent
- Universal Life Fixed Premium (no dump-in premiums allowed)
The associated formula for determining the reserve interest rate adjustment must use a formula which reflects the ceding company's investment earnings and incorporates all realized and unrealized gains and losses reflected in the statutory statement. The following is an acceptable formula:
Rate = 2 (I + CG)
X + Y - I - CG
Where: I is the net investment income
CG is capital gains less capital losses
X is the current year cash and invested assets plus investment income due and accrued less borrowed money
Y is the same as X but for the prior year
(2) Notwithstanding 211 CMR 129.02(1), an insurer subject to 211 CMR 129.00 may, with the prior approval of the commissioner, take such reserve credit or establish such asset as the commissioner may deem consistent with M.G.L. c. 175, or the regulations, including actuarial interpretations or standards adopted by the Division.
(3)