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

Form E-CR-C (v 20211101) Page 1 of 9

financialfilings@difi.az.gov

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

(Initial and Renewal Applications)

Applicant Information

Company Name:

Address:

Primary Contact:

Domiciliary Jurisdiction / Supervisory Authority:

Applicable Lines of Business:

I. 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 Director of the

Arizona Department of Insurance and Financial Institutions (“Director”) has the discretion to defer to that

jurisdiction’s certification and assigned rating; i.e., “passporting.” To assist the Director in the determination to defer

to another jurisdiction’s certification the following application procedures should be followed:

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

[If “Y

es”, Arizona will confirm that the initial or renewal certification has been reviewed by the NAIC Reinsuranc

Financial Analysis (E) Working Group (“ReFAWG”) for passporting purposes.]

b. I

f the answer to question I.a. is “No”, please proceed to Section II of this application.

c. If t

he answer to question I.a. is “Yes”, the applicant shall provide the information specified in the tabl

below for consideration by the Director. In the alternative, Director may permit the applicant to provide

ritten certification that some or all the required information was previously filed with the Lead State and the

ReFAWG.

Citation to

State

Law /

Regulation

Requirements

or N

Reference

and

Supporting

Documents

Arizona Revised

Statutes § 20

3602(G)(1)(A)

(G)(3)

Arizona

Administrative

Code R20

-6-

1605(C)

Status of Domiciliary Jurisdiction:

The

applicant must be domiciled and licensed in a

Qualified

Jurisdiction, as determined by the Director.

Reset

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v 20211101) Page 2 of 9

Citation to

State

Law /

Regulation

Requirements

or N

Reference

and

Supporting

Documents

Arizona

Revised

Statutes § 20

3602(G)(6)

Arizona

Adm

inistrative

Code R20

-6-

1605(D)

Verification

of Certification Issued by an NAIC

credited Jurisdiction:

the applicant is requesting that the Director recognize the

certification issued

by another NAIC accredited jurisdiction

(

i.e., passporting), the applicant must provide a copy of the

approval

letter

other documentation provided to the applicant by

uch NAIC accredited jurisdiction. At a minimum, this

let

ter must confirm the following information:

Name of state(s) in which applicant is currently

certified.

b. The

rating and collateral percentage assigned by the

accredited jurisdiction

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

requir

ements necessary to maintain certification.

Arizona Revised

Statutes § 20

3602(G)(5)

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

multi

-beneficiary trust for this purpose, the applicant

must submit

(1) a copy of the approval from the

miciliary regulator with regulatory oversight of the

100% collateral and reduced collateral multi

-beneficiary

trusts or its intention to secure the approval of the

domiciliary regulator of the trust before either trust can

be used. (2

) the form of the trust that will be used to

secure obligations incurred as a certified reinsurer; and

(

3) 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

tru

st (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 requirements of the

state’s Credit for Reinsur

ance statute and/or regulation.

NOTE: The MBT includes a provision that:

The certified reinsurer must bind itself by the language of the

multi

-beneficiary trust and agreement with the commissioner

with principal regulatory oversight of each such trust

account,

to fund, upon termination of any such trust account, out of the

remaining surplus of such trust any deficiency of any other such

trust account.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v 20211101) Page 3 of 9

Citation to

State

Law /

Regulation

Requirements

or N

Reference

and

Supporting

Documents

Arizona Revised

Statutes § 20

3602(G)(1)(d)

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

3602(G)(1)(e)

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

requirement could

disqualify the reinsurer from

certification.

b. Provide a statement that the applicant agrees to

post 100% security u

pon 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 Director is

required to post notice on the

Department

’s website promptly upon receipt of any

application for certification, including instructions on

how members of the public may respond to the

application.

The

Director may not take final action on the

application until at least 30 days after posting suc

notice. The 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 20211101) Page 4 of 9

II. Filing Requirements for Full Application

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

• The applicant has not been certified by an NAIC accredited jurisdiction; or

• The Director makes a determination not to recognize or defer to the certification issued by another NAIC

accredited jurisdiction; or

• The applicant is renewing its certification with the lead state or a state is not relying on the certification by

another NAIC accredited jurisdiction.

b. Check appropriate box:

Initial Application Renewal Application

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20

3602(G)(1)(a)

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 highest r

egulatory 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 and/

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 20211101) Page 5 of 9

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20

3602(G)(5)

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

to utilize a multi-beneficiary trust for this

purpose,

the applicant must submit (1) a copy of the

approval from the domiciliary regulator with regulatory

oversight of the 100% collateral and reduced collateral

multi

-beneficiary trusts or its intention to secure the

approval of the domiciliary regulator of the trust before

eith

er trust can be used; (2) the form of the trust that will

used to secure obligations incurred as a certified

reinsurer;

and (3) the form of the trust that will be used to

secure

obligations incurred outside of the applicant’s

ertified 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.

NOTE: The MBT includes a provision that:

The certified reinsurer must bind itself by the language of

the multi

-beneficiary trust and agreement with the

commissioner with

principal regulatory oversight of each

such trust account, to fund, upon termination of any such

trust account, out of the remaining surplus of such trust

any deficiency of any other such trust account.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v 20211101) Page 6 of 9

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

Arizona

Revised

Statutes § 20

3602(G)(1)(c)

and (e)

Arizona

Administrative

Code R20

-6-

1605(B)(3)(c)

Financial Strength Ratings (Stand-Alone or Group):

The applicant must maintain interactive

financial strength

ratings from two or more acceptable rating agencies.

Initial

or Affirmed financial strength rating dates must be within 15

months of the application date/renewal filing date.

The

applicant must provide the following:

a. Confirm all interactive financial strength ratings

currently maintained by the applicant.

b. Specify the type of financial strength rating (i.e.,

stand-alone or group).

c. If the financial strength rating is not on a stand-

alone basis, provide the rationale for the group

rating.

d. Copies of full rating agency reports with respect to

all financial strength ratings currently maintained by

the applicant. If a full report is not available, the

applicant must provide a letter from the applicable

rating agency affirming its current

financial strength

rating. Initial or Affirmed financial strength rating

dates must be within 15 months of the application

date/renewal filing date.

e. An explanation of any changes in the financial

strength rating during the last three years.

NOTE:

Acceptable rating agencies include A.M. Best, Fitch

Ratings, Moody’s Investor Service, Standard & Poor’s, Kroll

Bond Rating Agency, or any other Nationally Recognized

Statistical Rating Organization recognized by the SEC to

provide financial strength ratin

gs on insurance companies.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v 20211101) 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)(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) applicant’s reinsurance obligations

to U.S. cedents

that are in dispute and/or more than 90 days

past due exceed 5% of its total reinsurance obligations to

U.S. cedents as of the end of its prior financial reporting

year; or 2) the applicant’s reinsurance obligations to any of

the top 10 U.S. cedents (base

d on the amount of

outstanding reinsurance obligations as of the end of its prior

financial reporting year) that are in dispute and/or more than

90 days past due exceed 10% of its reinsurance obligations

to that U.S. cedent,

Then, in either case, the appl

icant will provide:

Notice of that fact to the Director and a detailed

explanation regarding the reason(s) for the amount of

disputed or overdue claims exceeding the levels noted

above; and .

A description of the applicant’s business practices

in dealing with U.S. ceding insurers and a statement that the

applicant commits to comply with all contractual

requirements applicable to reinsurance contracts with U.S.

ceding insurers.

Upon receipt of such notice and explanation, the

Director

may request additional information concerning

the applicant’s claims practices with regard to any or all

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

-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 20211101) Page 8 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

: ReFAWG requires this information for the last three

years for passporting purposes.

Arizona

Revised

Statutes § 20

3602(G)(1)(b)

and (2)

Arizona

Administrative

Code R20

-6-

1605(B)(4)(g)

& (h)

& (B)(7)(d)

Financial/Regulatory Filings:

The applicant must provide the following:

A copy of the most recent report of the independent

auditor.

b. Copies of the audited financial statements for the

last two years filed with its jurisdiction supervisor.

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 unincorporated 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 balanc

e of at least $250,000,000.

A copy of the Actuarial Opinion and other

regulatory filings, as filed with the reinsurer’s

jurisdiction supervisor.

NOTE: ReFAWG requires a stand

-alone Actuarial Opinion

for passporting purposes, or the functional equivale

nt under

the Supervisor’s applicable Actuarial Function Holder

Regime.

UNIFORM APPLICATION CHECKLIST FOR CERTIFIED REINSURERS

Form E-CR-C (v 20211101) Page 9 of 9

Citation to

State

Law /

Regulation

Requirements

Y or N

Reference and

Supporting

Documents

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

milar procedure, involving U.S. ceding insurers.

b. A

statement that the applicant commits to notify the

Director

any future

proposed participation in any solvent

scheme

of arrangement, or similar procedure, as soon as

practicable.

Arizona

Revised

Statutes § 20

3602(G)(1)(d)

Arizona

Administrative

Code R20

-6-

1605(B)(6)

Form E

-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

3602(G)(1)(e)

and (f)

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.

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 Director is required to post notice on

the Department’s

website promptly upon receipt of any application for

certification, including instructions on how members of the

public may respond to the application.

The Director may not take final action on the application until

at least 30 days after posting such notice. The Director will

consider any comments received during the public notice

period with respect to this application.

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