FOR
TRUSTEED REINSURER STATUS
In submitting your request for Trusteed Reinsurer Status, the following information must accompany your company letterhead request for Trusteed Reinsurer Status signed by a ranking executive officer of the company.
1. Sworn
statement from an officer of a qualified United States financial institution
wherein the trust funds are maintained that they meet the qualifications a
shown in Ark. Code Ann. §23-62-307.
2. Copy of the
most recent annual report of the assuming insurer provided to the NAIC; sworn
to by at least two of the assuming insurer’s executive officers.
3. (a) If a single assuming insurer – must show
proof of MAINTENANCE of a trusteed surplus for business written in the
(b) If a group of
individual unincorporated underwriters are the assuming insurer – must show
proof of MAINTENANCE of a trusteed surplus for business written in the
(c) If a group
of incorporated insurers are the assuming insurer – must show proof of
MAINTENANCE of policyholder surplus of not less than Ten Billion Dollars
($10,000,000,000); AND
i) continually in
business for at least three years immediately prior to making application for
Trusteed Reinsurer Status; AND
ii) submits to the Arkansas Insurance Department to examine
books and records and bears the expense of examination (proof by affidavit); AND
iii) shows proof of
MAINTENANCE of trusteed surplus for business written in the
iv) each group member must provide to the Commissioner
an annual Certification of Solvency by
that members domiciliary
4. Provide a
certified copy of the Trust Instrument for approval by the Commissioner.
5. Submit to
the Arkansas Insurance Department’s authority to examine the trust and the
assuming insurer’s books and records as determined by the Commissioner (proof
by affidavit).
6. No later
than February 28 of each year, the trustees of the trust shall report to the
Commissioner in writing setting forth the balance of the trust and listing the
trust’s investments at the preceding year end and certify by affidavit.
(a) that the
trust shall not expire before December 31 date OR
(b) when the
trust shall terminate.
7. Designate
the Commissioner or a designated attorney as its true and lawful attorney upon whom
may be served any lawful process in any action, suit, or proceeding instituted
by or on the behalf of the ceding company.
8. Submit to
the jurisdiction of any court of competent jurisdiction in any state in the
9. Provide a copy of the most recent
audited financial statement.
10. Provide a copy of the most recent
examination report.
11.
Provide a list
semi-annually of Arkansas Domestic Companies, which cede business to company,
along with the reinsurance intermediaries, which placed such business.
12. Initial
For yearly renewal of Trusteed Reinsurer status, the
requirements listed at number 2
(Annual statement filing) and number 11 must be current
along with the submission of
the annual renewal fee listed at number 12.
Submit
all of the above-required information to the attention of:
Angela Davis, Mgmt Project Analyst II
Arkansas Insurance Department
1200 West Third Street
Little Rock, AR 72201-1904
501-683-0231, fax 501-371-2747