Sec. 1. 24-A MRSA §731-B, sub-§1, ¶B-1 is enacted to read:

B-1.__Is accredited as a reinsurer in this State.__An accredited reinsurer is one that:

(1)__Files with the commissioner evidence of its submission to the State's jurisdiction;

(2)__Submits to the State's authority to examine its books and records;

(3)__Is licensed to transact insurance or reinsurance in at least one state or, in the case of a United States branch of an alien assuming insurer, is entered through and licensed to transact insurance or reinsurance in at least one state;

(4)__Files annually with the commissioner a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement; and

(5)__Maintains a surplus in regard to policyholders in an amount not less than $20,000,000 and whose accreditation has not been denied by the commissioner within 90 days of its submission or maintains a surplus in regard to policyholders in an amount less than $20,000,000 and whose accreditation has been approved by the commissioner;

Sec. 1. 24-A MRSA §731-B, sub-§1-A is enacted to read:

1-A.__Credit is not allowed a domestic ceding insurer if the assuming insurer's accreditation has been revoked by the commissioner after notice and hearing.

Sec. 2. 24-A MRSA §731-B, sub-§1, ¶C, as amended by PL 1999, c. 113, §19, is further amended to read:

C. Maintains a trust fund in a qualified United States financial institution for the payment of the valid claims of its United States ceding insurers, their assigns and successors in interest.

(1) The assuming insurer shall report annually to the superintendent information substantially the same as that required to be reported on the National Association of Insurance Commissioners Annual Statement