(a) the reinsurer carries a financial strength rating of category three or better31; or
(b) (i) the reinsurer has obtained an explicit and irrevocable guarantee32 from its
parent company (or head office33) to fully support the reinsurer in the
event of financial difficulties; and
(ii) its parent company (or head office) is licensed under the Act or carries a
financial strength rating of category three or better32. For the purpose of
meeting the rating requirement, the rating of subordinated debt issued by
the parent company (or head office) with rating of category three or
better32, may be accepted.