31 Pa. Code § 163.1

Current through Register Vol. 54, No. 52, December 28, 2024

Section 163.1 - Definitions

The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

Act-The Insurance Company Law of 1921 (40 P. S. §§ 341-991.1718).

Association-Individuals, partnerships or associations of individuals, authorized to engage in the business of insurance in this Commonwealth as insurers on the Lloyds plan.

Beneficiary-The domestic ceding insurer, or domestic ceding insurers who are members of the same holding company system and are participating in a joint reinsurance pooling arrangement or other arrangement establishing the respective rights of each ceding insurer within the same holding company system, for whose benefit a trust or letter of credit has been established and any successor of the beneficiary by operation of law. If a successor in interest to the named beneficiary is effectuated by the issuance of an order by a court of law, the successor beneficiary shall include and be limited to the court appointed domiciliary receiver, including a liquidator, rehabilitator or conservator.

Ceding insurer-An insurer that has transferred all or part of the insurance or reinsurance risk it has written to another insurer or reinsurer.

Commissioner-The Insurance Commissioner of the Commonwealth.

Credit for reinsurance-An increase in assets or reduction in liabilities for reinsurance in financial statements filed with the Department by domestic insurers in accordance with statutory insurance accounting principles.

Department-The Insurance Department of the Commonwealth.

Domestic-Incorporated or organized under the laws of the Commonwealth.

Exchange-Individuals, partnerships and corporations, authorized by the laws of the Commonwealth to exchange with each other inter-insurance or reciprocal insurance contracts.

Grantor-An unlicensed, unqualified reinsurer that has established a trust for the benefit of the beneficiary.

Insurer-A stock or mutual insurance company, including a title insurance company, association or exchange.

Qualified United States financial institution-

(i) An institution that meets the following qualifications:

(A) Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or a state thereof.

(B) Is regulated, supervised and examined by United States Federal or state authorities having regulatory authority over banks and trust companies.

(C) Has been determined by either the Commissioner or the Securities Valuation Office of the National Association of Insurance Commissioners or a successor thereto to meet standards of financial condition and standing that are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the Commissioner.

(ii) For purposes of specifying those institutions that are eligible to act as a fiduciary of a trust, the term also means an institution that meets the following qualifications:

(A) Is organized or, in the case of a United States branch or agency office of a foreign banking organization, licensed under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers.

(B) Is regulated, supervised and examined by Federal or State authorities having regulatory authority over banks and trust companies.

Trustee-A qualified United States financial institution as defined in section 319.1(g) of the act (40 P. S. § 442.1(g)).

Unlicensed, unqualified reinsurer-An assuming insurer which is neither:

(i) Licensed by the Department to transact insurance business in this Commonwealth.

(ii) Included on a list of qualified or certified reinsurers published and periodically reviewed by the Commissioner under section 319.1(a) of the act (40 P. S. § 442.1(a)).

31 Pa. Code § 163.1

The provisions of this § 163.1 amended May 24, 2013, effective 6/24/2013, 43 Pa.B. 2819.

The provisions of this § 163.1 amended under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412); and sections 319-319.2 of The Insurance Company Law of 1921 (40 P. S. § 442-442.2).

This section cited in 31 Pa. Code § 163.19 (relating to actions or rights of the Commissioner).