LD 1553
pg. 12
Page 11 of 25 PUBLIC Law Chapter 249 Page 13 of 25
Download Chapter Text
LR 1915
Item 1

 
(5)__Reference may not be made to the fact that these
funds may represent reinsurance premiums or that the
funds have been deposited for any specific purpose.

 
G.__The trust agreement described in paragraph E must be
established for the sole use and benefit of the ceding
insurer at least to the full extent of the reinsurance
vehicle's obligations to the ceding insurer under the
contract.__In the case of more than one ceding insurer, a
separate trust agreement must be entered into with each
ceding insurer and a separate trust account must be
maintained for each ceding insurer.

 
H.__The trust agreement described in paragraph E must
provide for the trustee to:

 
(1)__Receive assets and hold all assets in a safe
place;

 
(2)__Determine that all assets are in a form that the
ceding insurer or the trustee, upon direction by the
ceding insurer, may whenever necessary negotiate the
assets, without consent or signature from the
reinsurance vehicle or any other person or entity;

 
(3)__Furnish to the reinsurance vehicle, the
superintendent and the ceding insurer a statement of
all assets in the trust account referred to in
paragraph E reported at fair value upon its inception
and at intervals no less frequent than the end of each
calendar quarter;

 
(4)__Notify the reinsurance vehicle and the ceding
insurer within 10 days of any deposits to or
withdrawals from the trust account referred to in
paragraph E;

 
(5)__Upon written demand of the ceding insurer,
immediately take steps necessary to transfer absolutely
all right, title and interest in the assets held in the
trust account referred to in paragraph E to the ceding
insurer and deliver physical custody of the assets to
the ceding insurer; and

 
(6)__Allow no substitutions or withdrawals of assets
from the trust account referred to in paragraph E
except on written instructions from the ceding insurer.

 
I.__The trust agreement described in paragraph E must provide
that at least 30 days but not more than 45 days before
termination of the trust account written notification


Page 11 of 25 Top of Page Page 13 of 25
Related Pages
  Search Bill Text Legislative Information
Bill Directory Search
Bill
Status
Session Information
119th Legislature Bills Maine Legislature

Office of Legislative Information
100 State House Station
Augusta, ME 04333
voice: (207) 287-1692
fax: (207) 287-1580
tty: (207) 287-6826
Word Viewer for Windows Disclaimer