Certified Reinsurer

Pursuant to the Indiana Code 27-6-10-11.5 the commissioner shall allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that has been certified as a reinsurer in this state at all times for which statutory financial statement credit for reinsurance is claimed under this section. The credit allowed shall be based upon the security held by or on behalf of the ceding insurer in accordance with a rating assigned to the certified reinsurer by the commissioner. The security shall be in a form consistent with the provisions of IC 27-6-10-11.5 and IC 27-6-10-14 and 760 IAC 1-56-7.5 section 10, 11 or 12. The amount of security required in order for full credit to be allowed shall correspond with the following requirements:

 

Financial Strength Rating granted by the Department

Minimum Amount Withheld for Full Credit

Secure-1

0%

Secure-2

10%

Secure-3

20%

Secure-4

50%

Secure-5

75%

Vulnerable-6

100%

 

Initial and annual filing requirements to qualify as Certified Reinsurer

Process if Reinsurer is already certified in another state.

Qualified U.S. Accredited Jurisdiction

Send the requested documents to:

Indiana Department of Insurance
311 West Washington Street, Suite 103
Indianapolis, IN  46204
Attention of:

 

Pamela Walters Amanda Denton
Supervising Property and Casualty Analyst Supervising Life and Health Analyst
(317) 232-5331 (317) 232-1369
pwalters@idoi.in.gov adenton@idoi.in.gov

Current List of Certified Reinsurers- 2016, 2017, 2018

Public Notices of Pending Applications

Initial and annual filing requirements to qualify as Certified Reinsurer

  1. Company submits an initial application.
  2. Company must be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction.
  3. Company maintains capital and surplus, or its equivalent, of no less than $250,000,000, calculated in accordance with I.C. 27-6-10-11.5(b)(2) and 760 IAC 1-56-7.5(b)(3)(B).
  4. Company maintains a financial strength rating from two or more acceptable rating agencies. The ratings shall be based on interactive communication between the rating agency and the assuming insurer. An acceptable rating agency is: (1) Standard & Poor's (S&P); (2) Moody's Investors Service (Moody's); (3) Fitch Ratings (Fitch); (4) A.M. Best Company (Best); or (5) any other nationally recognized statistical rating organization acceptable to the Commissioner.
  5. An assuming insurer applying to be a certified reinsurer shall agree to post 100 percent security upon the entry of an order of rehabilitation, liquidation or conservation against the ceding insurer for the benefit of the ceding insurer or its estate.
  6. For a certified reinsurer domiciled in the United States, the most recent applicable NAIC Annual Statement Blank, and either Schedule F (for a property/casualty reinsurer) or Schedule S (for a life or health reinsurer).
  7. For a certified reinsurer not domiciled in the United States, the most recent Form CR-F (for a property/casualty reinsurer) or Form CR-S (for a life or health reinsurer), as such forms shall be prescribed by the Commissioner.
  8. Disclose past, current or pending regulatory actions against the certified reinsurer.
  9. Provide a list, by cedent, of all overdue reinsurance claims payable that are more than 90 days past due or are in dispute regarding reinsurance assumed by the applicant from U.S. domestic ceding insurers.  Identify whether any of the listed cedents are in administrative supervision or receivership.
  10. Provide report of the independent auditor on the financial statements of the certified reinsurer.
  11. For a certified reinsurer not domiciled in the United States, audited financial statements, (i.e., audited United States GAAP basis if available; audited IFRS basis statements including an audited footnote reconciling equity and net income to a United States GAAP basis; or with the permission of the Commissioner, audited IFRS statements with reconciliation to United States GAAP certified by an officer of the company), regulatory financial statement filings, and actuarial opinion as filed with the non-United States jurisdiction supervisor. Upon the initial application for certification, the insurer shall provide the Commissioner with audited financial statements filed with its non-United States jurisdiction supervisor for at least the previous three years.
  12. Disclose the liquidation priority of obligations to a ceding insurer in the certified reinsurer's domiciliary jurisdiction in the context of an insolvency proceeding.
  13. Disclose a certified reinsurer's past or current participation in any solvent scheme of arrangement, or similar procedure that involves United States ceding insurers. A certified reinsurer that proposes participation by the certified reinsurer in a solvent scheme of arrangement shall provide the Commissioner with prior notice of such scheme as early as practicable.
  14. Submit a properly executed CR-1 Form on a form prescribed by the Commissioner as evidence of its submission to the jurisdiction of this state.
  15. Submit a certification from its domestic regulator that the certified reinsurer is in good standing and maintains capital in excess of the jurisdiction's highest regulatory action level.
  16. The reinsurer must agree that all reinsurance contracts will include the provisions of 760 IAC 1-56-7.5(e) and 760 IAC 1-56-13.
  17. Company must provide a statement that it agrees to submit such other information that the Commissioner may reasonably require in accordance with I.C. 27-6-10-11.5(b)(7).

 

Process if Reinsurer is already certified in another state

The Reinsurer wishing to become a Certified Reinsurer in Indiana must file a formal request to be designated as a Certified Reinsurer in Indiana. Following will need to be provided:

1.  Passport Application checklist

2.  Confirmation that the Reinsurer has pursued and received Certified Reinsurer status through   another US state,

3.  Identification of the US state in which the Reinsurer initially applied for certification which was in turn reviewed by the NAIC Reinsurance Financial Analysis Working Group,

  1. Identification of the information submitted to the original certification state.  We do not require a resubmission of these materials to Indiana; just a detailed description of the materials, and
  2. Submission of a CR-1 Form for Indiana. 760 IAC 1-56-7.5(b)(6)