Subchapter I — Requirements for Credit for Reinsurance

Ins 52.005   Purpose and intent.

Ins 52.01   Definitions.

Ins 52.02   Credit allowed a licensed ceding insurer.

Ins 52.025   Revocation of accreditation or certification.

Ins 52.03   Insolvency clause and jurisdiction; financial reinsurance disallowed.

Ins 52.04   Reduction from liability for reinsurance ceded by a licensed insurer to an assuming insurer.

Ins 52.05   Trust agreements qualifying for security.

Ins 52.06   Letters of credit.

Ins 52.065   Concentration Risk.

Ins 52.07   Applicability.

Subchapter II — Credit for Reinsurance Involving Term and Universal Life Reserve Financing

Ins 52.20   Purpose, intent, and applicability.

Ins 52.21   Exemptions.

Ins 52.22   Definitions.

Ins 52.23   Actuarial method.

Ins 52.24   Requirements applicable to covered policies to obtain credit for reinsurance: opportunity for remediation.

Ins 52.25   Severability.

Ins 52.26   Prohibition against avoidance.

subch. I of ch. Ins 52 Subchapter I — Requirements for Credit for Reinsurance

Ins 52.005 Ins 52.005 Purpose and intent. The purpose of this subchapter is to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally. The intent is to ensure adequate regulation of insurers and reinsurers, and adequate protection for those to whom they owe obligations. In furtherance of this interest, the commissioner hereby provides that upon the insolvency of a non-United States insurer or reinsurer that provides security to fund its United States obligations in accordance with this subchapter, the assets representing the security shall be maintained in the United States and claims shall be filed with and valued by the state insurance commissioner with regulatory oversight, and the assets shall be distributed, in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies. This subchapter sets forth rules and procedural requirements that the commissioner deems necessary to carry out the provisions of this subchapter. The actions and information required by this subchapter are declared to be necessary and appropriate in the public interest and for the protections of the ceding insurers in this state. The commissioner further declares that the matters contained in this subchapter are fundamental to the business of insurance in accordance with 15 USC 1011 to 1012.

Ins 52.005 History History: CR 21-066: cr. Register May 2022 No. 797, eff. 6-1-22; correction made under s. 35.17, Stats., Register May 2022 No. 797.

Ins 52.01 Ins 52.01 Definitions. In this subchapter, unless the context otherwise requires:

Ins 52.01(1g) (1g) “Covered agreement” means an agreement entered into pursuant to Dodd-Frank Wall Street Reform and Consumer Protection Act, 31 USC 313 and 314, that is currently in effect or in a period of provisional application and addresses the elimination, under specified conditions, of collateral requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this state or for allowing the ceding insurer to recognize credit for reinsurance.

Ins 52.01(1m) (1m) “Policyholder surplus” means capital and surplus.

Ins 52.01(2) (2) “Qualified United States financial institution” means an institution that:

Ins 52.01(2)(a) (a) Is organized or, in the case of a United States office of a foreign banking organization, licensed, under the laws of the United States or any state;

Ins 52.01(2)(b) (b) Is regulated, supervised and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and