20:06:31:28Certified

reinsurers - prompt payment of claims. Based on the analysis conducted under subdivision 20:06:31:27(5) of a certified reinsurer's reputation for prompt payment of claims, the director may make appropriate adjustments in the security the certified reinsurer is required to post to protect its liabilities to U.S. ceding insurers, provided that the director shall, at a minimum, increase the security the certified reinsurer is required to post by one rating level under subdivision 20:06:31:27(1), if the director finds: (1) More than fifteen percent of the certified reinsurer's ceding insurance clients have overdue reinsurance recoverables on paid losses of ninety days or more which are not in dispute and which exceed $100,000 for each cedent; or (2) The aggregate amount of reinsurance recoverables on paid losses which are not in dispute that are overdue by ninety days or more exceeds $50,000,000.

Source: 44 SDR 71, effective October 23, 2017.