58-14-16.3. Eligibility for certification of association including incorporated and individual unincorporated underwriters.
201 words·~1 min read·
/sd/title-58/chapter-58-14/58-14-16-3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
An association including incorporated and individual unincorporated underwriters may be a certified reinsurer. In addition to satisfying the requirements of § 58-14-16.2 , to be eligible for certification:
(1)The association shall satisfy the association's minimum capital and surplus requirements through the capital and surplus equivalents, net of liabilities, of the association and the association's members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in an amount determined by the director to provide adequate protection;
(2)The incorporated members of the association may not be engaged in any business other than underwriting as a member of the association and shall be subject to the same level of regulation and solvency control by the association's domiciliary regulator as are the unincorporated members; and
(3)Within ninety days after its financial statements are due to be filed with the association's domiciliary regulator, the association shall provide to the director an annual certification by the association's domiciliary regulator of the solvency of each underwriter member. If the annual certification is unavailable, the association shall file financial statements, prepared by independent public accountants, of each underwriter member of the association.