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California Law (Last Updated: March 4, 2014) |
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Insurance Code - INS |
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Division 1. GENERAL RULES GOVERNING INSURANCE |
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Part 2. THE BUSINESS OF INSURANCE |
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Chapter 1. General Regulations |
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ARTICLE 3. Certificate of Authority |
Section 717.5.
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(a) For purposes of Sections 700 and 717, the commissioner may determine that an insurer admitted and domiciled in this state, or an insurer applying to become admitted and domiciled in this state, including an applicant pursuant to subdivision (a) of Section 709.5, is qualified to be designated as a professional reinsurer, if the commissioner determines that the insurer is all of the following:
(1) Principally engaged in the business of reinsurance.
(2) Does not conduct significant amounts of direct insurance as percentage of its net premiums.
(3) Is not engaged, on an ongoing basis, in the business of soliciting direct insurance.
(b) The commissioner may consider any information relevant to this determination. An insurer that holds, or is applying for qualification as, a professional reinsurer, shall provide the commissioner with information or documentation regarding the determinations under this section, upon request. The commissioner may prescribe terms and conditions applicable to the certificate of authority, as appropriate under this section.
(c) A domestic, professional reinsurer shall continue to be qualified as long as it continues to meet the requirements set forth in this section.
(d) The commissioner may, after notice and an opportunity to be heard, revoke a reinsurer's qualification, if the reinsurer no longer qualifies under this section.
(e) A domestic insurer that is qualified as a professional reinsurer may include that designation in its name, solicitations, and advertisements.
(f) An insurer seeking qualification under this section shall pay a filing fee of two thousand five hundred dollars ($2,500), in advance, to the commissioner.
(g) The commissioner may adopt regulations in accordance with the procedure provided in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code or otherwise prescribe requirements consistent with this section.
(h) The commissioner may post prescribed requirements, consistent with this section, on the department's Internet Web site.