§ 38.2-1316.3. Credit allowed a foreign or alien ceding insurer
A. Except as provided in § 38.2-1316.4, credit shall be allowed a foreign or alien ceding insurer only when the assuming insurer meets one of the following criteria:
1. Credit shall be allowed when the assuming insurer is licensed or accredited in this Commonwealth.
2. Credit shall be allowed when the assuming insurer is licensed in another state and maintains a surplus to policyholders in an amount not less than $20 million.
3. Credit shall be allowed when the assuming insurer maintains trust funds for the payment of the valid claims of its United States policyholders and ceding insurers, their assigns and successors in interest in amounts equal to those prescribed in subdivision 4 of subsection A of § 38.2-1316.2, provided the assuming insurer and all requisite trusts substantially comply with the provisions of subdivision 4 of subsection A and subsection B of § 38.2-1316.2.
B. Credit allowed pursuant to the provisions of this section shall not exceed the amount of credit allowed by the ceding insurer's state of domicile or entry. Furthermore, when credit is allowed pursuant to the provisions of subdivision 2 or 3 of subsection A of this section, the Commission may require the assuming insurer, either directly or through the ceding insurer, to submit to it the most recent annual statement and any other additional reports of the assuming insurer as the Commission deems necessary to determine the financial condition of the assuming insurer.
(1991, c. 264.)
Sections: Previous 38.2-1313 38.2-1314 38.2-1315 38.2-1315.1 38.2-1316 38.2-1316.1 38.2-1316.2 38.2-1316.3 38.2-1316.4 38.2-1316.5 38.2-1316.6 38.2-1316.7 38.2-1316.8 38.2-1317 38.2-1317.1 NextLast modified: April 16, 2009