§ 2303.3. Credit for Reinsurance Ceded to Admitted Insurer.

Credit on financial statements shall be allowed for reinsurance ceded to an assuming insurer that was licensed in California as of the date on which statutory financial statement credit for reinsurance is claimed, unless (1) the assuming insurer is the subject of a regulatory order or regulatory oversight on the grounds of hazardous financial condition by any state in which it is licensed, (2) the cession is not in compliance with the applicable provisions of Sections 2303.11 through 2303.13 of this article, or (3) the assuming insurer was not licensed or otherwise permitted to write or assume the lines or classes of business in its state of domicile.

HISTORY

1. New section filed 10-24-2006; operative 11-23-2006 (Register 2006, No. 43).

Note

Note: Authority cited: Sections 922.8 and 923, Insurance Code;CalFarm Insurance Company v. Deukmejian, 48 Cal. 3d 805 (1989); and20th Century Insurance Company v. Garamendi, 8 Cal. 4th 216 (1994). Reference: Sections 922.2, 922.3, 922.4, 922.6 and 923, Insurance Code.