| (4) agreement to notify the Commissioner within 10
days of any regulatory actions taken against it, any change in the
provisions of its domiciliary license, or any change in its rating
by an approved rating agency, including a statement describing such
changes and the reasons for the changes;
(5) agreement to annually file:
(A) information comparable to relevant provisions of
the NAIC financial statement for use by insurance markets in accordance
with §7.622(d)(3) of this title;
(B) the report of the independent auditor on the financial
statements of the insurance enterprise in accordance with §7.622(d)(4)
of this title;
(C) audited financial statements, regulatory filings,
and actuarial opinion in accordance with §7.622(d)(4) and (5)
of this title;
(D) an updated list of all disputed and overdue reinsurance
claims regarding reinsurance assumed from United States domestic ceding
insurers in accordance with §7.622(d)(6) of this title; and
(E) a statement of its good standing as an insurer
or reinsurer with the supervisor of its domiciliary jurisdiction in
accordance with §7.622(d)(7) of this title.
(d) Submissions. The certified assuming insurer applicant
must comply with the applicable information filing requirements in
this subsection and submit the information it agreed to submit under
subsection (c) of this section, with any certification application
and in a manner consistent with the agreements included in Form CR-1.
All information submitted by certified assuming insurers and applicants
that is not otherwise public information subject to disclosure will
be exempt from disclosure if provided by the Public Information Act,
Government Code Chapter 552 and will be withheld from public disclosure.
The certified assuming insurer applicant must submit with each certification
application:
(1) a statement of any regulatory actions taken against
the applicant within three years prior to the application including:
(A) fines and penalties; and
(B) changes in the provisions of the applicant's domiciliary
license.
(2) a statement of changes in the applicant's financial
strength rating by an acceptable NRSRO including any reports or supporting
documentation provided by the NRSRO;
(3) for United States domiciled applicants, the most
recent applicable reinsurance schedule filed with the applicant's
domestic jurisdiction, or for applicants not domiciled in the United
States, the most recent Form CR-F or CR-S, as applicable;
(4) for applicants not domiciled in the United States,
the report of the independent auditor on the financial statements
of the insurance enterprise. The basis for the auditor's report must
be:
(A) audited United States GAAP basis statements, if
available;
(B) audited IFRS basis statements with an audited footnote
reconciling equity and net income to a United States GAAP basis; or
(C) with the permission of the Commissioner, audited
IFRS statements with reconciliation to United States GAAP certified
by an officer of the company;
(5) for applicants not domiciled in the United States,
the following filings made with the applicant's domestic supervisor:
(A) the actuarial opinion and other regulatory filings;
and
(B) audited financial statements for the prior three
years;
(6) an updated list of all disputed and overdue reinsurance
claims regarding reinsurance assumed from United States domestic ceding
insurers. If the applicant's reinsurance obligations:
(A) to United States ceding insurers that are in dispute
or more than 90 days past due exceed five percent of its total reinsurance
obligations to United States cedents as of the end of its prior financial
reporting year; or
(B) to any of the applicant's top 10 United States
ceding insurers (based on the amount of outstanding reinsurance obligations
as of the end of its prior financial reporting year) that are in dispute
or more than 90 days past due exceed 10 percent of its reinsurance
obligations to that United States ceding insurers; and
(C) in either situation, the applicant must:
(i) submit notice to the Commissioner of the fact and
a detailed explanation regarding the reasons for the amount of disputed
or overdue claims exceeding either or both of the levels listed in
subparagraphs (A) and (B) of this paragraph;
(ii) a description of the applicant's business practices
in dealing with United States ceding insurers;
(iii) a statement that the applicant commits to comply
with all contractual requirements applicable to reinsurance contracts
with United States ceding insurers; and
(iv) any such additional information concerning the
applicant's claims practices with regard to any or all United States
ceding insurers that the Commissioner may request following receipt
of the notice;
(7) a certification from the certified assuming insurer's
domestic regulator that the certified assuming insurer is in good
standing and maintains capital in excess of the jurisdiction's highest
regulatory action level;
(8) evidence of the applicant's financial strength
by:
(A) confirming all interactive financial strength ratings
currently maintained by the applicant;
(B) specifying the type of financial strength rating;
and if the financial strength rating is not on a stand-alone basis,
provide the rationale for the group rating;
(C) submitting copies of full NRSRO reports dated within
15 months of the application date all financial strength ratings currently
maintained by the applicant, except if a full report is not available,
the applicant must provide a letter from the applicable NRSRO affirming
its current financial strength rating; and
(D) providing an explanation of any changes in the
financial strength rating during the last three years;
(9) the mechanisms the applicant will use to secure
obligations incurred as a certified assuming insurer in accordance
with Insurance Code §§493.1033-493.1038 and this subchapter.
If the applicant intends to utilize a multibeneficiary trust for this
purpose, the applicant must submit:
(A) a copy of the approval from the domiciliary regulator
with regulatory oversight of the 100 percent collateral and reduced
collateral multibeneficiary trusts or its intention to secure the
approval of the domiciliary regulator of the trust before either trust
can be used;
(B) the form of the trust that will be used to secure
obligations incurred as a certified assuming insurer; and
(C) the form of the trust that will be used to secure
obligations incurred outside of the applicant's certified assuming
insurer status; and
(10) a description of the applicant's past, present
or proposed future participation in any solvent scheme of arrangement,
or similar procedure, involving United States ceding insurers and
a statement that the applicant will notify the Commissioner in writing
of any future proposed participation by the certified assuming insurer
in a solvent scheme of arrangement, or similar procedure, not less
than 30 days prior to such participation;
(11) applicant information, including the applicant's:
(A) full name;
(B) physical address for its principal place of business;
(C) mailing address;
(D) NAIC number, United States federal tax identification
number, and ISI number; and
(E) contact individual's name, phone number, and email;
and
(12) other information that the Commissioner may reasonably
require.
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