Fill - Free fillable UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS (Arizona) PDF form

Form E-CR-C (v. 20180619) Page 1 of 9

Financial Affairs Division

Arizona Department of Insurance

100 North 15

Avenue, Suite 102 Phone: (602) 364-3999

Phoenix, Arizona 85007-2624 Email: financialfilings@azinsurance.gov

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

(Initial and Renewal Applications)

I. Applicant Information

Company Name:

Address:

Primary Contact:

Domiciliary Jurisdiction / Supervisory Authority:

Applicable Lines of Business:

II. Filing Requirements for Reinsurer Currently Certified by Another NAIC-Accredited Jurisdiction

If an applicant for certification has been certified as a reinsurer in an NAIC accredited jurisdiction, the Arizona

Director of Insurance has the discretion to defer to that jurisdiction’s certification, and has the discretion to defer to

the rating assigned by that jurisdiction; i.e., “passporting.”

a. Has the applicant been certified by an NAIC accredited jurisdiction? (Yes or No) ;

[If “Yes”, Arizona will confirm that the initial or renewal certification has been reviewed by the NAIC Reinsurance

Financial Analysis (E) Working Group (Reinsurance-FAWG) for passporting purposes.]

b. If the answer to question II.a. is “No”, please proceed to Section III of this application.

c. If the answer to question II.a. is “Yes”, the applicant shall provide the information required under Section II for

consideration by the Director:

Citation to

State

Law /

Regulation

Requirements

or N

Reference

and

Supporting

Documents

Arizona

Revised

Statutes § 20

261.05(F)(1),

(G)

Arizona

Administrative

Code R20

-6-

1605(C)

Status of Domiciliary Jurisdiction:

The

applicant must be domiciled and

licensed

in a Qualified Jurisdiction, as

deter

mined by the Director.

Reset

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v. 20180619) Page 2 of 9

Citation to

State

Law /

Regulation

Requirements

or N

Reference

and

Supporting

Documents

Arizona

Revised

Statutes § 20

261.05(H)(7)

Arizona

Adm

inistrative

Code R20

-6-

1605(D)

Verification of Certification Issued by

NAIC Accredited Jurisdiction:

the applicant is requesting that the

ommissioner recognize the certification

issued

by another NAIC accredited

jurisdiction

(i.e., passporting), the applicant

ust provide a copy of the approval letter

other documentation provided to the

applicant

by such NAIC accredited

jurisdiction.

At a minimum, this letter must

confirm

the following information:

Name of state(s) in which applicant is

currently

certified.

b. The

rating and collateral percentage

assigned

with respect to the applicant.

The effective and expiration dates with

respect

to the certification.

d. The

lines of business to which the

certification

is applicable.

The applicant’s commitment to comply

with

all requirements necessary to maintain

cert

ification.

Arizona

Revised

Statutes § 20

261.05(

Mechanisms Used to Secure

Obligations

Incurred as a Certified

Reinsurer:

The applicant must specify the

mechanisms it will use to secure

obligations incurred as a Certified

Reinsurer. If the applicant intends to utilize

a multibeneficiary trust for this purpose,

the applicant must submit (1) the form of

the trust tha

t will be used to secure

obligations incurred as a certified

reinsurer; and (2) the form of the trust that

will be used to secure obligations incurred

outside of the applicant’s certified

reinsurer status, i.e., the applicant’s 100%

collateralized trust (i

f applicable). The form

of each trust is required to be submitted

pursuant to state law in order to ensure

that security for these obligations will be

kept separate and to ensure that each trust

meets the requirements of the state’s

Credit for Reinsurance

statute and/or

regulation.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v. 20180619) Page 3 of 9

Citation to

State

Law /

Regulation

Requirements

or N

Reference

and

Supporting

Documents

Arizona

Revised

Statutes § 20

261.05(F

)(4)

Arizona

Administrative

Code R20

-6-

1605(D

)(1)

Form CR-1 (For Initial and Renewal

Applications):

The applicant must provide Arizona’s

Form E

-CR-1, which must be properly

executed by an officer authorized to bind

the applicant to the commitments set forth

in the form.

Fees:

None.

Arizona

Revised

Statutes §

20-

261.05(F)(5)

Arizona

Administrative

Code R20

-6-

1605(A)(3)

Other Requirements:

The applicant must:

a. Commit to comply with other

reasonable requirements deemed

necessary for certification by the

certifying state. Failure to comply with

such other req

uirement could disqualify

the reinsurer from certification.

b. Provide a statement that the applicant

agrees to post 100% security upon the

entry of an order of rehabilitation or

conservation against the ceding insurer or

its estate.

Arizona

Administrative

Code R20

-6-

1605(B)

Public Notice Requirement:

The Arizona Director is required to post

notice on ADOI’s website promptly upon

receipt of any application for certification,

including instructions on how members of

the public may respond to the application.

The Arizona Director may not take final

act

ion on the application until at least 30

days after posting such notice. The

Arizona Director will consider any

comments received during the public

notice period with respect to this

application.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v. 20180619) Page 4 of 9

III. Filing Requirements for Full Application

a. The applicant shall provide the information required under Section III if:

i. the applicant has not been certified by an NAIC accredited jurisdiction

ii. the Commissioner makes a determination not to recognize or defer to the certification issued by another

NAIC accredited jurisdiction; or

iii. the applicant is renewing its certification by an NAIC accredited jurisdiction.

b. Check appropriate box:

Initial Application Renewal Application

Citation to

State

Law /

Regulation

Requirements

or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20

261.05(F)(1),

(G)

Arizona

Administrative

Code R20

-6-

1605

(B)(3)(a),

(B)(7)(f)

(C)(3)

Status of Domiciliary Jurisdiction / Proof

of Licensure and Good Standing:

The applicant must

be domiciled and

licensed in a Qualified Jurisdiction, as

determined by this state. The applicant must

be in good standing (or the jurisdiction’s

equivalent classification) and maintain capital

and surplus in excess of

its domiciliary

jurisdiction’s highes

t regulatory action level.

The Commissioner will consider the following

information with respect to the applicant’s

domiciliary jurisdiction:

a. Whether the domestic supervisory

authority has been approved as a Qualified

Jurisdiction in this state.

Confirmation as to whether the domestic

supervisory authority is included on the NAIC

List of Qualified Jurisdictions.

The applicant must provide the following

information:

a. A copy of the certificate of authority or

license to transact insurance a

nd/or

reinsurance from the applicant’s domiciliary

jurisdiction.

b. A certification from the applicant’s

domestic supervisory authority affirming that

the applicant is in good standing (or the

jurisdiction’s equivalent classification) and

maintains

capital and surplus in excess of the

jurisdiction’s highest regulatory action level.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v. 20180619) Page 5 of 9

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20

261.05(H)

Mechanisms Used to Secure Obligations

Incur

red as a Certified Reinsurer: The

applicant

must specify the mechanisms it

will

use to secure obligations incurred as a

Certified

Reinsurer. If the applicant intends

utilize a multibeneficiary trust for this

purpose,

the applicant must submit (1) the

form

of the trust that will be used to secure

obligations

incurred as a certified reinsurer;

and

(2) the form of the trust that will be

used

to secure obligations incurred outside

the applicant’s

certified reinsurer

status,

i.e.,

the applicant’s 100% collateralized trust

(if

applicable). The form of each trust is

required

to be submitted pursuant to state

law

in order to ensure that security for these

obligations will

be kept separate and to

ensure

that each trust meets the

requir

ements of the state’s Credit for

Reinsurance

statute and/or regulation.

Arizona

Revised

Statutes § 20

261.05(F)(3)

(5)

Arizona

Administrative

Code R20

-6-

1605(B)(3)(c)

Financial Strength Ratings:

The applicant must maintain interactive

financial

strength ratings from two or more

acceptable rating agencies. The applicant

must provide the following:

a. Confirm all interactive financial strength

ratings currently maintained by the applicant.

b. Copies of full rating agency reports with

respect

to all financial strength ratings

currently maintained by the applicant, if

available. If a full report is not available, the

applicant must provide a letter from the

applicable rating agency confirming its

current financial strength rating.

c. A descri

ption of any changes within the

last three years in the financial strength rating

from an approved rating agency.

NOTE

: Acceptable rating agencies

include A.M. Best, Fitch Ratings, Moody’s

Investor Service, Standard & Poor’s, or any

other Nationally Recognized Statistical Rating

Organization.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v. 20180619) Page 6 of 9

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Administrative

Code R20

-6-

1605(B)(4)(b)

Disputed and/or Overdue Reinsurance

Claims

/ Business Practices:

The

Director may consider the applicant’s

business

practices in dealing with its ceding

insurers,

including compliance with

contractual

terms and obligations. The

applicant

must provide the following if: 1) at

the

individual cedent level, the reinsurer has

10%

or more of its reinsurance obligation

ayable in dispute and/or more than 90 days

ast due to any of its top 15 individual U.S.

cedents,

based on amount of reinsurance

obligations ass

umed, or 2) at the aggregate

level

with respect to U.S. cedents, the

reinsurer

has claims that are in dispute a

nd/or

ore than 90 days past due that are 1% or

ore of its total reinsurance obligations

yable to all U.S. cedents:

A list and description of all reinsurance

laims that are in dispute and/or more than

days past due regarding reinsurance

ass

umed from U.S. domestic ceding

insurers.

b. A

description of the applicant’s

business

practices in dealing with U.S.

ceding

insurers, including its record of

ompliance with reinsurance contractual

rms, and a statement that the applicant

ommits to comply with all contractual

requirements

applicable to reinsurance

contracts

with U.S. ceding insurers.

Arizona

Administrative

Code R20

-6-

1605(B)(4)(c) &

(d)

Schedules for Reinsurance Assumed and

Reinsurance

Ceded:

The applicant must provide the following:

a. For applicants domiciled in the U.S.,

provide the most recent NAIC Annual

Statement Blank Schedule F

(property/casualty) and/or Schedule S (life

and health).

b. For applicants domiciled outside the U

.S.

provide Form E

-CR-F (property/casualty)

and/or Form E

-CR-S (life and health),

completed in accordance with the instructions

adopted by the NAIC.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v. 20180619) Page 7 of 9

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Administrative

Code R20

-6-

1605(B)(4)(f) &

(7)(a)

Regulatory Actions:

The applicant must provide a description of

any regulatory actions taken against the

applicant.

a. Include all regulatory actions, fines and

penalties, regardless of the

amount.

b. Provide a description of any changes

in the provisions of the

applicant’s domiciliary

license.

NOTE

: Reinsurance-FAWG requires this

information for the last three years for

passporting purposes.

Arizona

Revised

Statutes §

20-

261.05(F)(2) &

(7)

Arizona

Administrative

Code R20

-6-

1605(B)(4)(g) &

(h)

Financial/Regulatory Filings:

The applicant must provide the following:

a. A copy of the most recent report of the

independent auditor.

b. Copies of the audited financial statements

for the last three years. Financial statements

must demonstrate that the applicant has

minimum capital and surplus, or the

equivalent, of at least $250,000,000. If the

applicant is an association including

incorporated and individual unincorpora

ted

underwriters, statements must demonstrate

that the applicant has capital and surplus

equivalents (net of liabilities) of at least

$250,000,000, and a central fund containing

a balance of at least $250,000,000. Please

note the following requirements w

ith respect

to these financial statements:

•

Audited U.S. GAAP basis statements

must be submitted if available.

•

Audited IFRS basis statements are

acceptable but must include an audited

footnote reconciling equity and net

income to a U.S. GAAP basis.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v. 20180619) Page 8 of 9

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20

261.05(F)(2) &

(7)

Arizona

Administrative

Code R20

-6-

1605(B)(4)(g) &

(h)

& (B)(7)(d)

• With the permission of the Director, an

applicant may be allowed to submit

audited IFRS basis statements with

reconciliation to U.S. GAAP certified by

an officer of the applicant.

•

Upon the initial certification, the Director

may consider audited financial

statements for the last three years as

filed with the applicant’s non-U.S.

jurisdiction supervisor. If the Director

accepts such statements in the initial

filing, the applicant must acknowledge

and commit that future financial

statement filings will include the

appropriate reconciliation to a U.S. GAAP

basis, as indicated above.

c. A copy of the Actuarial Opinion and other

regulatory filings, as filed with the applicant’s

domiciliary supervisor.

NOTE

: Reinsurance-FAWG requires a stand-

alone Actuarial Opinion for passporting

purposes.

Arizona

Administrative

Code R20

-6-

1605(B)(4)(j)

Solvent Schemes of Arrangement:

The

applicant must provide:

A description of any past, present or

proposed

future participation in any

solvent

scheme of arrangement, or similar

procedure,

involving U.S. ceding insurers.

•

b. A statement that the applicant

commits to notify the commissioner of

future

proposed participation in any

solvent scheme of arrangement, or sim

ilar

procedure, as soon as practicable.

Arizona

Revised

Statutes § 20

261.05(F)(4)

Arizona

Administrative

Code R20

-6-

1605(B)(6)

Form E-CR-1 (For Initial and Renewal

Applications):

The applicant must provide Arizona’s Form

-CR-1, which must be properly executed by

an officer authorized to bind the applicant to

the commitments set forth in the form.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v. 20180619) Page 9 of 9

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Fees:

None.

Arizona

Revised

Statutes § 20

261.05(F)(5) &

(6)

Arizona

Administrative

Code R20

-6-

1605(A)(3)

Other Requirements:

The applicant must:

a. Commit to comply with other reasonable

requirements deemed necessary for

certification by the certifying state.

Provide a statement that the applicant

agrees to post 100% security upon the entry

of an order of rehabilitation or conservation

against the ceding insurer or its estate.

Arizona

Administrative

Code R20

-6-

1605(B)

Public Notice Requirement:

The

Arizona Director is required to post

notice on ADOI’s website promptly upon

receipt of any application for certification,

including instructions on how members of the

public may respond to the application.

The Arizona Director may not take final action

the application until at least 30 days after

posting such notice. The Arizona Director will

consider any comments received during the

public notice period with respect to this

application.

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