UNAUTHORIZED REINSURANCE. A. This Article applies only to the extent a Subscribing Reinsurer does not qualify for credit with any insurance regulatory authority having jurisdiction over the Company’s reserves.
UNAUTHORIZED REINSURANCE. (Applies only to a subscribing reinsurer who does not qualify for full credit with any insurance regulatory authority having jurisdiction over the Company’s reserves.)
UNAUTHORIZED REINSURANCE. (Applies only to a Subscribing Reinsurer who at the inception of the Contract or at any time thereafter does not qualify for full credit with any insurance regulatory authority having jurisdiction over the Company’s reserves.) As regards Policies or bonds issued coming within the scope of this Contract, the Company agrees that when it shall file with the insurance regulatory authority or set up on its books reserves for unearned premium and losses covered hereunder which it shall be required by law to set up, it will forward to the Subscribing Reinsurer a statement showing the proportion of such reserves which is applicable to the Subscribing Reinsurer. The Subscribing Reinsurer hereby agrees to fund such reserves in respect of unearned premium, known outstanding losses that have been reported to the Subscribing Reinsurer and allocated loss adjustment expense relating thereto, losses and allocated loss adjustment expense paid by the Company or the Legal Entities but not recovered from the Subscribing Reinsurer, plus reserves for losses incurred but not reported as determined by the Company, as shown in the statement prepared by the Company (hereinafter referred to as “ Subscribing Reinsurer Obligations”) by Letters of Credit unless the method of funding is determined by applicable law, statute, or regulation., The Subscribing Reinsurer agrees to apply for and secure timely delivery to the Company of clean, irrevocable, and unconditional Letters of Credit issued by a bank that is a qualified U.S. financial institution and containing provisions acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves in an amount equal to the Subscribing Reinsurer’s proportion of said reserves. At the Company’s request, the Subscribing Reinsurer will agree to provide separate Letters of Credit for any Legal Entities and the Company covered under this Contract. Such Letters of Credit shall be issued for a period of not less than one year, and shall be automatically extended for one year from their date of expiration or any future expiration date unless 60 days prior to any expiration date the issuing bank shall notify the Company by certified mail that the issuing bank elects not to consider the Letters of Credit extended for any additional period. The Subscribing Reinsurer and Company agree that the Letters of Credit provided by the Subscribing Reinsurer pursuant to the provisions of this Contract may be drawn upon at any time, notwi...
UNAUTHORIZED REINSURANCE. (LM-02500-2006.10.26-A) (Applies only to a Subscribing Reinsurer who at the inception of the Contract or at any time thereafter does not qualify for full credit with any insurance regulatory authority having jurisdiction over the Company’s reserves.)
UNAUTHORIZED REINSURANCE. If reinsurance provided under this Agreement is disallowed to any party for financial statement purposes by the insurance regulatory authority of any state, due to the laws or regulations of such state relating to reinsurance effective with unauthorized companies, then the unauthorized company shall secure the reinsurance ceded to the extent it has been disallowed by one of the following methods:
UNAUTHORIZED REINSURANCE. A. If the Company will be denied full statutory credit for reinsurance ceded to a subscribing Reinsurer pursuant to the credit for reinsurance laws or regulations in any applicable jurisdiction, that subscribing Reinsurer will secure an amount equal to the Obligations through one or more of the following: (i) a Letter of Credit which meets the requirements of the NAIC and applicable state insurance laws and regulations; (ii) assets held in trust pursuant to reinsurance trust agreement, which meets the requirements of the NAIC and applicable state insurance laws and regulations (a “Reinsurance Trust”); or (iii) cash. The subscribing Reinsurer shall determine, in its sole discretion, which funding mechanism or combination of funding mechanisms to utilize; provided that the Company receives full credit for the subscribing Reinsurer’s reinsurance.
UNAUTHORIZED REINSURANCE. A. If the Company is unauthorized or otherwise unqualified in any state or other United States jurisdiction, and if, without security in a form acceptable to the insurance regulatory authorities having jurisdiction over an Affiliate, a financial penalty to such Affiliate, arising from the inability to make a reduction to liabilities for the reinsurance ceded to the Company or the recording of a liability for unauthorized reinsurance, would result on any statutory statement or report such Affiliate is required to make or file with such insurance regulatory authorities or a court of law in the event of insolvency, the Reinsurer will timely fund or provide for the Reinsurer’s share of security for the Obligations (as defined below) under the Underlying Reinsurance Agreement with such Affiliate by:
UNAUTHORIZED REINSURANCE. A. This Article applies:
UNAUTHORIZED REINSURANCE. As regards Ceded Contracts, the Company agrees that when it shall file with the insurance regulatory authority or set up on its books reserves for unearned premium and Losses, Loss Adjustment Expenses and Extra Contractual Obligations covered hereunder which it shall be required by law to set up, it will forward to the Retrocessionaire a statement showing the proportion of such reserves which is applicable to the Retrocessionaire. Without limiting Article 19, the Retrocessionaire hereby agrees to provide security (to the extent, if any, required in addition to security provided pursuant to Article 19) sufficient to permit the Company to take full statutory credit for cessions hereunder in respect of the Company’s reserves by funds withheld, cash advances and/or a Letter of Credit. Subject to Article 19, the Retrocessionaire shall have the option of determining the method of funding provided it is acceptable to the insurance regulatory authorities having jurisdiction over the Company’s reserves.
UNAUTHORIZED REINSURANCE. The obligations of the Reinsurer hereunder shall be secured by one or more trust accounts and/or by one or more clean, irrevocable and unconditional letters of credit, all as more fully described below. As regards Contracts issued by the Company coming within the scope of this Agreement, the Company agrees that when it shall file with the insurance regulatory authority or set up on its books reserves for unearned premium and losses covered hereunder which it shall be required by law to set up, it will forward to the Reinsurer a statement showing the proportion of such reserves which is applicable to the Reinsurer. The Reinsurer hereby agrees to fund such reserves in respect of unearned premium, known outstanding losses that have been reported to the Reinsurer and allocated loss adjustment expense relating thereto, losses and allocated loss adjustment expense paid by the Company but not recovered from the Reinsurer, plus reserves for losses incurred but not reported, as shown in the statement prepared by the Company (hereinafter referred to as "Obligations") by funds withheld, cash advances, a reinsurance trust account or a letter of credit. The Reinsurer shall have the option of determining the method of funding provided it is acceptable to the Connecticut Insurance Department and any other insurance regulatory authorities having jurisdiction over the Company's reserves.
