Financial Analysis of Insurance Company by vdz15226

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									STATE OF CALIFORNIA                                                                            Steve Poizner, Insurance Commissioner
DEPARTMENT OF INSURANCE
FINANCIAL ANALYSIS DIVISION
300 S. SPRING STREET, 13TH FLOOR, SOUTH TOWER
LOS ANGELES, CA 90013
www.insurance.ca.gov


DATE:                    December 1, 2010

TO:                      All Admitted Insurers with A&H Exposure

SUBJECT:                 A & H Insurers/Reinsurers with Workers’ Compensation Exposures

                         DEPOSIT AND REPORTING REQUIREMENTS FOR
                         INSURER UNDER CALIFORNIA INSURANCE CODE SECTIONS
                         (CICS) 11690, 11691, 11691.1, 11691.2, 11691.3 AND 11692.5


Every insurer or reinsurer desiring to have the ability to reinsure the injury, disablement, or death portions of policies of
workers’ compensation insurance under the class of disability insurance is required, as a prerequisite to such reinsurance, to
notify “Notice” the Commissioner of their intention, in the manner and form prescribed by the Commissioner. The prescribed
form(s) and attachment(s), if applicable are available on the California Department of Insurance’s website
(http://www.insurance.ca.gov).

In regards to this Notice, insurers and reinsurers are reminded that:

1. If your company has previously reinsured workers’ compensation business as described above, the company must also file the
above Notice and disclose the date that the required deposit was made with the Department.

2. For a company that is reinsuring workers’ compensation business for the first time as described above, but failed to comply
with the notice requirements, the company in addition to notifying the Department must also certify that the required “deposit”
has been completed and submit a copy of the completed form.

The “Notice” and attachments, if applicable must be submitted using the (OASIS) Online Assistance System for Insurer
Submittal, in the required electronic format(s). In addition also submit one paper copy of any page(s) containing original
signatures to:
                                              California Department of Insurance
                                                    Financial Analysis Division
                                               300 South Spring Street, 13th Floor
                                                      Los Angeles, CA 90013

Every insurer desiring admission for workers’ compensation insurance or desiring to reinsure the injury, disablement, or death
portions of policies of workers’ compensation insurance, under the class of disability insurance, is also required as a
prerequisite to such reinsurance, to maintain on file in the Office of the Insurance Commissioner a deposit of cash or cash
equivalents, in favor of the Commissioner as trustee for the beneficiaries of awards of compensation against the insurer, or
against any other insurer upon a policy reinsured by the insurer, to the extent of that reinsurance. The deposit shall be in an
amount provided in CICS 11691 as amended (effective January 1, 2003).
All Admitted Insurers with A&H Exposure
December 1, 2010
Page 2



The Commissioner shall notify the insurer or the ceding insurers, if the reinsurer has not maintained deposits as required by
CICS 11691, in amounts equal to the amount of credits claimed by its ceding insurers. If the deposit shortfall is not corrected
within 15 days from the date of the notice, the Commissioner may disallow all or a portion of the reserve credits claimed by the
ceding insurers (CICS 11691(g)).

The Commissioner shall establish a list of all insurers or reinsurers authorized to reinsure the injury, disablement, or death
portions of policies of workers’ compensation insurance under the class of disability insurance. The master list of those
authorized insurers or reinsurers shall be current and published at least semiannually. The master list shall contain a notice that
if the insurer enters into a contract of reinsurance with an unauthorized insurer or reinsurer, the ceding insurer may not be able
to claim reserve credit for that reinsurance.

Pursuant to CICS 11692.5 there is a late filing fee for failure to deposit cash and cash equivalents on time.

The foregoing should not be construed to alter or affect the deposit obligations of former self-insured employers as required by
Section 3702 of the Labor Code.


The following workers’ compensation reports must be filed by insurers reinsuring the injury, disablement or death portion of
policies of workers’ compensation insurance under the class of disability insurance:

1. Special California Schedule P – Part I through Part VII
2. Form A-110 – Valuation of all Securities on Workers' Compensation Deposit with the State of California
STATE OF CALIFORNIA                                                                        DEPARTMENT OF INSURANCE
FAD 151 (12/10)




                     Notice To Be Filed By Company That Has Not Previously Reinsured

             Company That Has Reinsured Portions of Workers' Compensation In California
                       Who Has Not Complied With The Notice Requirement.

Date:

To:                 California Department of Insurance
                    Financial Analysis Division
                    300 South Spring Street, 13th Floor, South Tower
                    Los Angeles, CA 90013
                    Attn: Financial Records Unit

Subject:            Notice pursuant to California Insurance Code Section (CICS) 11691(b) (deposit and
                    reporting requirements for insurers reinsuring injury, disablement or death portions of
                    workers' compensation Insurance)

Pursuant to the notice requirements of CICS 11691(b), please be advised that the insurer identified below intends to
reinsure under the class of disability insurance, the injury disablement, or death portions of policies of workers'
compensation Insurance written subject to the workers compensation laws of California.


Name of Company:

NAIC Number:

Mailing Address: (Number & Street)

             (City, State & Zip Code)

Contact Person:

Position:

Telephone Number:

Facsimile:

E-mail address:


I certify that deposits in the amount of $
have been made in California in accordance with the requirements of CICS 11691(a).


Very truly yours,




      (Official Company Representative Signature)




For questions regarding filing, please contact the Financial Records Unit at 213-346-6423.
For questions concerning the completion of this form, please contact the Workers' Compensation Deposit Review
Team at 213-346-6433


FAD-151A_A&H_No_Prev_Notice


                            Consumer Hotline (800) 927-HELP.Producer Licensing (800)967-9331

								
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