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CA Department of Insurance

US Trusts

Filing Instructions For Trusteed Reinsurer Status

California Insurance Code section 922.4(d), and sections 2303.5(b) and 2303.22(d) of Title 10 in the corresponding regulations, provides requirements for applicants seeking trusteed reinsurer status in California, renewing trusteed status, or amending a previously reviewed trust form.

Initial Application

An assuming insurer seeking approval of a U.S. trust under section 922.4(d) of the California Insurance Code may submit an application to the California Department of Insurance at the following address:
California Department of Insurance
Corporate & Regulatory Affairs Branch
45 Fremont Street, 24th Floor
San Francisco, CA 94105
The application shall consist of a cover letter transmitting the following items:
  1. A deposit in the amount of $3,000, which includes the legal review, administrative costs and final determination.  Financial review of the trust assets will be billed separately on an hourly basis;
  2. A copy of the trust document, certified by the commissioner of the Oversight State.  "Oversight State" means the state where the trust is domiciled or the state whose commissioner has accepted principal regulatory oversight of the trust pursuant to the terms of the trust agreement;
  3. A certified copy of the approval of the form of the trust issued by the commissioner of the Oversight State;
  4. An independent audit report;
  5. An actuarial opinion;
  6. Copies of all documents submitted to the Oversight State, unless the Commissioner has agreed that copies of specified documents need not be provided; alien insurers shall include all reports required by their domiciliary countries.
  7. An executed Certificate of Assuming Insurer Form AR-1, wherein the assuming insurer:
  1. Submits to the authority of the Department to examine its books and records, and agrees to bear the expense of any such examination; and
  2. Affirms it has attached to the Certificate a current list of its ceding insurers domiciled in California, and undertakes to submit additions to or deletions from the list to the Department at least once per calendar quarter, unless, for good cause shown, the Department permits a different reporting interval for additions to or deletions from the list;
  1. An executed Designation of Agent for Service of Process and Consent to Jurisdiction Form AR-2; and
  2. Any other documents requested by the Department.

NOTE: The cover letter and Items 2, 3, 4, 7 and 8 shall be submitted in duplicate.

Maintaining Eligibility Of Trusteed Reinsurer Status

Financial Documents

To retain eligibility of the trust, the assuming insurer shall submit:
  1. Copies of all documents submitted to the Oversight State, unless the Department has agreed that copies of specified documents need not be provided. Alien insurers shall include all reports required by their domiciliary countries. Copies shall be submitted to the Department at the same time they are submitted to the Oversight State or domiciliary country.
  2. List of ceding California domestic insurers and Form AR-1 (quarterly).
  3. Trustee's report (not later than February 28 of each year).

The above documents shall be submitted to:
California Department of Insurance
Financial Records Unit
Financial Analysis Division
300 South Spring Street, South Tower
Los Angeles, CA 90013

Annual Renewal Application

An annual renewal application shall be submitted not later than August 15, and shall consist of a cover letter and the following documents:
  1. A deposit in the amount of $1,500, which includes the legal review, administrative costs and final determination. Financial review of the trust assets will be billed separately on an hourly basis;
  2. A copy of the trust document, certified by the commissioner of the Oversight State OR a copy of the trust document certified by the applicant's corporate secretary that the submitted trust is a true copy of the original deed of trust, and that there have not been any changes since the trust became effective;
  3. A certified copy of the approval of the form of the trust issued by the commissioner of the Oversight State OR a copy of the original approval letter certified by the corporate secretary to be a true copy;
  4. An executed Certificate of Assuming Insurer Form AR-1;
  5. An executed Designation of Agent for Service of Process and Consent to Jurisdiction Form AR-2; and
  6. Any other documents requested by the Department.

The annual renewal application shall be submitted in duplicate to:
California Department of Insurance
Corporate & Regulatory Affairs Branch
45 Fremont Street, 24th Floor
San Francisco, CA 94105
NOTE: The cover letter and Items 2, 3, 4 and 5 shall be submitted in duplicate.

Amending the Trust Form

Amendment Application

Applications for approval of trust amendments shall be submitted for review by the Department, and shall consist of a cover letter and the following documents:
  1. A deposit in the amount of $500, which includes the legal review, administrative costs and final determination.
  2. A copy of the amended trust document, certified by the commissioner of the Oversight State;
  3. A certified copy of the approval of the amended form of the trust issued by the commissioner of the Oversight State; and
  4. Any other documents requested by the Department.

The amendment application shall be submitted to:
California Department of Insurance
Corporate & Regulatory Affairs Branch
45 Fremont Street, 24th Floor
San Francisco, CA 94105
NOTE: The cover letter and Items 2 and 3 shall be submitted in duplicate.
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