§ 27-43-7 - Reinsurance. - Rhode Island Statutes

SECTION 27-43-7

   § 27-43-7  Reinsurance. – (a) Any captive insurance company may provide reinsurance on risks ceded by anyother insurer, provided, that the captive insurance company and the insurercomply with the requirements established by regulations promulgated pursuant tothis chapter.

   (b) Any captive insurance company may reinsure its risks andtake credit for reserves on risk or on portions of risk ceded to reinsurers asprovided in chapter 1.1 of this title. Subsidiary captive insurance companiesmay take credit for reserves on risks or portions of risk ceded to reinsurersnot complying with chapter 1.1 of this title only after obtaining the priorapproval of the director. The director may require any other documents,financial information or other evidence that the reinsurer will be able toprovide adequate security for its financial obligations. The commissioner maydeny authorization or impose any limitations on the activities of a reinsurerthat, in his or her judgment, are necessary and proper to provide adequatesecurity for the ceding captive insurance company and for the protection andconsequent benefit of the public at large.

   (c) For the purposes of this chapter, the insurance by acaptive insurance company of any workers' compensation qualified self-insuredplan of its parent and affiliates shall be deemed to be reinsurance.