38.2-1316.3 - Credit allowed a foreign or alien ceding insurer. - Virginia Statutes

§ 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 oralien ceding insurer only when the assuming insurer meets one of thefollowing criteria:

1. Credit shall be allowed when the assuming insurer is licensed oraccredited in this Commonwealth.

2. Credit shall be allowed when the assuming insurer is licensed in anotherstate and maintains a surplus to policyholders in an amount not less than $20million.

3. Credit shall be allowed when the assuming insurer maintains trust fundsfor the payment of the valid claims of its United States policyholders andceding insurers, their assigns and successors in interest in amounts equal tothose prescribed in subdivision 4 of subsection A of § 38.2-1316.2, providedthe assuming insurer and all requisite trusts substantially comply with theprovisions 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 exceedthe amount of credit allowed by the ceding insurer's state of domicile orentry. Furthermore, when credit is allowed pursuant to the provisions ofsubdivision 2 or 3 of subsection A of this section, the Commission mayrequire the assuming insurer, either directly or through the ceding insurer,to submit to it the most recent annual statement and any other additionalreports of the assuming insurer as the Commission deems necessary todetermine the financial condition of the assuming insurer.

(1991, c. 264.)