22
(5) The director shall timely create and publish a list of assuming insurers that have
satisfied the conditions set forth in this rule and to which cessions must be granted credit
under this rule. Both of the following apply to the list of assuming insurers:
(a) If an NAIC accredited jurisdiction has determined that the conditions set forth in
subrule (2) of this rule have been met, the director has the discretion to defer to that
jurisdiction’s determination and add that assuming insurer to the list of assuming insurers to
which cessions must granted credit under this subrule. The director may accept financial
documentation filed with another NAIC accredited jurisdiction or with the NAIC in
satisfaction of the requirements of subrule (2) of this rule.
(b) When requesting that the director defer to another NAIC accredited jurisdiction’s
determination, an assuming insurer must submit a properly executed form approved by the
director and additional information as the director may require. If the director receives a
request under this subdivision, the director shall notify other states through the NAIC
committee process and provide relevant information with respect to the determination of
eligibility.
(6) If the director determines that an assuming insurer no longer meets 1 or more of the
requirements under this rule, the director may revoke or suspend the eligibility of the
assuming insurer for recognition under this rule. While an assuming insurer’s eligibility is
suspended, no reinsurance agreement issued, amended, or renewed after the effective date of
the suspension qualifies for credit except to the extent that the assuming insurer’s obligations
under the contract are secured pursuant to section 1105 of the code, MCL 500.1105. If an
assuming insurer’s eligibility is revoked, no credit for reinsurance may be granted after the
effective date of the revocation with respect to any reinsurance agreements entered into by
the assuming insurer, including reinsurance agreements entered into before the date of
revocation, except to the extent that the assuming insurer’s obligations under the contract are
secured in a form acceptable to the director and are consistent with the provisions of section
1105 of the code, MCL 500.1105.
(7) Before denying statement credit or imposing a requirement to post security under
subrule (6) of this rule or adopting any similar requirement that has substantially the same
regulatory impact as security, the director shall do all of the following:
(a) Communicate with the ceding insurer, the assuming insurer, and the assuming
insurer’s supervisory authority that the assuming insurer no longer satisfies 1 of the
conditions listed in subrule (2) of this rule.
(b) Provide the assuming insurer with 30 days from the initial communication to submit
a plan to remedy the defect and 90 days from the initial communication to remedy the defect,
except in exceptional circumstances in which a shorter period is necessary for policyholder
and other consumer protection. After the expiration of 90 days or less, as set out in this
subdivision, if the director determines that no or insufficient action was taken by the
assuming insurer, the director may impose any of the requirements as set out in this subrule.
(c) Provide a written explanation to the assuming insurer of any of the requirements set
out in this subrule.
(8) If subject to a legal process of rehabilitation, liquidation, or conservation, as
applicable, the ceding insurer, or its representative, may seek and, if determined appropriate
by the court in which the proceedings are pending, may obtain an order requiring that the
assuming insurer post security for all outstanding liabilities.
(9) As used in this rule: