Section 1104.30  Credit for Reinsurance – Accredited Reinsurers  

a)         Pursuant to Section 173.1(1)(B) of the Code, the Director shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer which is accredited as a reinsurer in this State as of the date of the ceding insurer's most recent statutory financial statement.  An accredited reinsurer is one which:

1)         Files a properly executed Form AR-1 Certificate of Assuming Insurer found in Appendix A of this Part as evidence of its submission to this State's jurisdiction and to this State's authority to examine its books and records; and

2)         Files with the Director a certified copy of a letter or a certificate of authority or of compliance as 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

3)         Files annually with the Director a copy of its annual financial 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

4)         Maintains a surplus as regards policyholders in an amount not less than $20,000,000 and whose accreditation has been approved by the Director.

b)         If the Director determines that the assuming insurer has failed to meet or maintain any of these qualifications, the Director may upon written notice and hearing revoke the accreditation.

(Source:  Amended at 33 Ill. Reg. 9314, effective June 18, 2009)