Common use of Reinsurance Accounting Standards Clause in Contracts

Reinsurance Accounting Standards. o The Contractor shall be required to obtain reinsurance from insurance organizations that have Standard and Poor's claims-paying ability ratings of "AA" or higher and a Xxxxx’x bond rating of “A1” or higher, unless otherwise approved by OMPP. ▪ Subcontractors o Subcontractors’ reinsurance coverage requirements must be clearly defined in the reinsurance agreement. o Subcontractors should be encouraged to obtain their own stop-loss coverage with the above-mentioned terms. o If subcontractors do not obtain reinsurance on their own, the Contractor is required to forward appropriate recoveries from stop-loss coverage to applicable subcontractors.

Reinsurance Accounting Standards. o The Contractor shall be required to obtain reinsurance from insurance organizations that have Standard and Poor's claims-claims- paying ability ratings of "AA" or higher and a Xxxxx’x Moody’s bond rating of “A1” or higher, unless otherwise approved by OMPPFSSA. ▪ Subcontractors o Subcontractors’ reinsurance coverage requirements must be clearly defined in the reinsurance agreement. o Subcontractors should be encouraged to obtain their own stop-loss coverage with the above-mentioned terms. o If subcontractors do not obtain reinsurance on their own, the Contractor is required to forward appropriate recoveries from stop-stop- loss coverage to applicable subcontractors.

Reinsurance Accounting Standards. o  The Contractor shall be required to obtain reinsurance from insurance organizations that have Standard and Poor's claims-paying ability ratings of "AA" or higher and a Xxxxx’x Moody’s bond rating of “A1” or higher, unless otherwise approved by OMPP. ▪  Subcontractors o  Subcontractors’ reinsurance coverage requirements must be clearly defined in the reinsurance agreement. o  Subcontractors should be encouraged to obtain their own stop-loss coverage with the above-mentioned terms. o  If subcontractors do not obtain reinsurance on their own, the Contractor is required to forward appropriate recoveries from stop-loss coverage to applicable subcontractors.