Trust accounts of certified reinsurer securing obligations as multibeneficiary trust.

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58-14-16.10. Trust accounts of certified reinsurer securing obligations as multibeneficiary trust.

If a certified reinsurer maintains a trust to fully secure the certified reinsurer's obligations subject to §58-14-11 and chooses to secure the certified reinsurer's obligations incurred as a certified reinsurer in the form of a multibeneficiary trust, the certified reinsurer shall maintain separate trust accounts for the certified reinsurer's obligations incurred under reinsurance agreements issued or renewed as a certified reinsurer with reduced security as permitted by this chapter or comparable laws of other United States jurisdictions and for the certified reinsurer's obligations subject to §58-14-11. It shall be a condition to the grant of certification that the certified reinsurer shall have bound itself, by the language of the trust and agreement with the director with principal regulatory oversight of each trust account, to fund upon termination of any trust account, out of the remaining surplus of the trust any deficiency of any other trust account.

Source: SL 2017, ch 211, §21.


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