Pennsylvania Code
Title 31 - INSURANCE
Part VIII - Miscellaneous Provisions
Chapter 163 - REQUIREMENTS FOR FUNDS HELD AS SECURITY FOR THE PAYMENT OF OBLIGATIONS OF UNLICENSED, UNQUALIFIED REINSURERS
Section 163.16 - Provisions in reinsurance agreements entered into inconjunction with letters of credit

Universal Citation: 31 PA Code § 163.16

Current through Register Vol. 54, No. 12, March 23, 2024

When a reinsurance agreement is entered into in conjunction with a letter of credit, either the reinsurance agreement or an ancillary agreement thereto shall contain provisions that:

(1) Require the reinsurer to provide letters of credit to the ceding insurer.

(2) Specify what recoverables and reserves are covered by the letter of credit.

(3) Specify that notice of nonrenewal of the letter of credit is a reason that the ceding insurer may draw down the full amount of the letter of credit.

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Pennsylvania CodeTitle 31 - INSURANCEPart VIII - Miscellaneous ProvisionsChapter 163 - REQUIREMENTS FOR FUNDS HELD AS SECURITY FOR THE PAYMENT OF OBLIGATIONS OF UNLICENSED, UNQUALIFIED REINSURERSSection 163.16 - Provisions in reinsurance agreements entered into inconjunction with letters of credit