Current through Register Vol. 56, No. 24, December 18, 2024
(a) An insurer
shall be permitted to take a credit for reinsurance ceded to an assuming
insurer where the assuming insurer is accredited as a reinsurer in this State
as of the date of the ceding insurer's statutory financial statement. An
accredited reinsurer is one which meets all of the following standards:
1. Files with the Commissioner a letter
requesting approval for accreditation and listing the information upon which it
will rely and is submitting in connection therewith;
2. Submits a non-refundable filing fee made
payable to Treasurer, State of New Jersey, of $ 1,000 for an initial filing and
$ 1,000 for a renewal filing;
3.
Files with the Commissioner a properly executed form AR-1 (incorporated herein
by reference as Exhibit 1 in the Appendix) which establishes that it submits to
this State's jurisdiction and this State's authority to examine its books and
records;
4. Files with the
Commissioner a certified copy of a certificate of authority, a certificate of
compliance or an equivalent document which has been properly notarized, as
evidence that it is currently licensed to transact insurance or reinsurance in
at least one state or, in the case of a United States branch of an assuming
alien insurer, is entered through and licensed to transact insurance or
reinsurance in at least one state;
5. Files annually with the Commissioner:
i. A copy of its most recent annual statement
filed with the insurance department of its state of domicile;
ii. Its most recent audited financial
statement;
iii. A current actuarial
opinion which certifies:
(1) For a property
and casualty insurer, to the adequacy of the loss and loss adjustment expense
reserves; or
(2) For a life and
health assuming insurer that:
(A) Its policy
reserves are adequate;
(B) It
satisfies all minimum capital and surplus requirements in all states in which
it is licensed to transact business; and
(C) That its capital and surplus levels are
adequate relative to its distribution by type and level of risk of its invested
assets and the business being written, and attaches any and all documents in
support thereof; and
iv. The quarterly statement for the quarter
immediately preceding the application, except for renewals which shall require
the quarterly statement due May 15;
6. Either:
i. Maintains a surplus as regards
policyholders in an amount not less than $ 20,000,000 and whose accreditation
has not been denied by the Commissioner within 120 days of filing its
submission with the Commissioner; or
ii. Maintains a surplus as regards
policyholders of less than $ 20,000,000 whose accreditation has been approved
by the Commissioner; and
7. Provides any additional information which
may include, but is not limited to, information which the Commissioner deems
necessary to ensure that the particular reinsurer's condition and methods of
operation are not such as would render its operations hazardous to the public
or its policyholders.
(b) The above information shall be filed with
the Commissioner at:
Office of Solvency Regulation
Attention: Reinsurance Accreditation
Department of Banking and Insurance
20 West State Street
PO Box 325
Trenton, New Jersey 08625-0325
(c) Except for applicants for accreditation
that maintain surplus as regards policyholders of less than $ 20,000,000, an
initial application for accreditation shall be deemed approved unless the
Commissioner transmits a letter to the filer, within 120 days from the date of
the filing of the completed application identifying the reasons upon which the
Commissioner has denied the filer's accreditation. Where a filing is deemed
approved, the initial approval shall be valid until August 31. If the initial
approval is issued after June 1, it shall be deemed valid until August 31, of
the following year.
(d) A reinsurer
shall apply for renewal of its accreditation annually at the address in (b)
above, to the attention of "Renewal Reinsurance Accreditation." The reinsurer
shall file its application for renewal no later than June 1 of any year in
which it seeks to continue its accreditation and shall submit updated
information as required in (a) above.
(e) A renewal filed in accordance with the
above shall be deemed approved unless denied by the Commissioner prior to
August 31.
(f) An accredited
reinsurer shall notify the Commissioner within 30 days of the occurrence of any
of the following actions taken against it by any state or jurisdiction:
1. Any limitation on its ability to write new
or renewal business;
2. Any
delinquency proceedings;
3. The
suspension, revocation or nonrenewal of its certificate of authority in any
state or jurisdiction;
4. An order
or any action by any state or jurisdiction which requires it to cease writing
new or renewal business; or
5. Any
action by any state or jurisdiction requiring that the reinsurer file a plan or
any document to increase its capital, for example, a risk based capital
plan.
(g) Where the
Commissioner determines that an assuming insurer has failed to maintain any of
the qualifications set forth in (a)1 through 7 and (f) above, after written
notice and opportunity for a hearing in accordance with the Administrative
Procedure Act,
N.J.S.A. 52:14B-1 et seq., the Commissioner
may revoke or refuse to renew the assuming insurer's accreditation.
(h) The Department shall maintain and publish
a current list of accredited reinsurers on the Department's website:
www.dobi.nj.gov.
(i) An insurer shall be prohibited from
reporting a credit with respect to reinsurance ceded after 90 days from the
date an assuming insurer has had its accreditation denied, revoked or
nonrenewed.
