Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-63 - CREDIT FOR REINSURANCE
Section 0780-01-63-.04 - CREDIT FOR REINSURANCE - ACCREDITED REINSURERS

Universal Citation: TN Comp Rules and Regs 0780-01-63-.04

Current through September 24, 2024

(1) Pursuant to T.C.A. § 56-2-208(b)(3), the commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is accredited as a reinsurer in this state as of the date on which statutory financial statement credit for reinsurance is claimed. An accredited reinsurer must:

(a) File with the commissioner a properly executed Form AR-1 (adopted as Appendix A of this chapter and incorporated herein by reference) as evidence of its submission to this state's jurisdiction and to this state's authority to examine its books and records; and

(b) File with the commissioner a certified copy of a certificate of authority or other acceptable evidence that it is licensed to transact insurance or reinsurance in at least one state, or, in the case of a United States branch of an alien assuming insurer, is entered through and licensed to transact insurance or reinsurance in at least one state; and

(c) File annually with the commissioner a copy of its annual statement filed with the insurance department of its state of domicile or, in the case of an alien assuming insurer, with the state through which it is entered and in which it is licensed to transact insurance or reinsurance, and a copy of its most recent audited financial statement; and

(d) Maintain a surplus as regards policyholders in an amount not less than twenty million dollars ($20,000,000), or obtain affirmative approval of the commissioner upon a finding that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers.

(2) If the commissioner determines that the assuming insurer has failed to meet or maintain any of these qualifications, the commissioner may upon written notice and opportunity for hearing pursuant to the Uniform Administrative Procedures Act, T.C.A. §§ 4-5-101 et seq., suspend or revoke the accreditation. Credit shall not be allowed a domestic ceding insurer under this chapter if the assuming insurer's accreditation has been revoked by the commissioner, or if the reinsurance was ceded while the assuming insurer's accreditation was under suspension by the commissioner.

Authority: T.C.A. §§ 56-2-208(2), 56-2-208(b)(3), 56-2-209(e), and 56-2-301.

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