R590-143-2. Purpose and Scope

(1) The purpose of this rule is to: (a) recognize that a licensed insurer may enter into a reinsurance agreement that yields legitimate relief to a ceding insurer; and (b) establish criteria for a licensed insurer to enter into a reinsurance agreement. (2)(a) This rule applies to: (i) a domestic life insurer; (ii) a domestic accident and health insurer; (iii) a foreign life insurer not subject to a similar rule in its domiciliary state; (iv) a foreign accident and health insurer not subject to a similar rule in its domiciliary state; and (v) a property and casualty insurer with respect to its accident and health insurance business. (b) This rule does not apply to: (i) assumption reinsurance; (ii) yearly renewable term reinsurance; and (iii) certain nonproportional reinsurance, such as stop-loss or catastrophe reinsurance.