# COMAR Title 31 — Maryland Insurance Administration

## Subtitle 05 — Assets, Liabilities, Reserves, and Investments of Insurers

### Chapter 08 — Credit for Reinsurance

#### Regulation .23 Reinsurance Contract.

*COMAR 31.05.08.23*

Credit for reinsurance may not be allowed by the Commissioner as an admitted asset or deduction from liability to any ceding insurer for a reinsurance contract entered into with a reinsurer under this chapter after the adoption of this regulation unless the reinsurance contract includes:

A. An insolvency clause, in accordance with Insurance Article, §5-905(a), Annotated Code of Maryland; and

B. A provision under which the reinsurer, if an unauthorized reinsurer, has:

  (1) Submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States;

  (2) Agreed to comply with all requirements necessary to give the court or panel jurisdiction;

  (3) Designated an agent to receive service of process; and

  (4) Agreed to abide by the final decision of the court or panel.

C. Includes a proper reinsurance intermediary clause, if applicable, which stipulates that the credit risk for the intermediary is carried by the assuming insurer.