Section 27-5B-19 – Rulemaking Authority.
Section 27-5B-19 Rulemaking authority. (a) The commissioner may adopt rules implementing this chapter. (b) In addition to the authority of the commissioner pursuant to subsection (a), the commissioner may adopt rules applicable to reinsurance arrangements as provided in this subsection. (1) A rule adopted pursuant to this subsection may apply only to reinsurance relating to […]
Section 27-5B-20 – Reinsurance Agreements Affected.
Section 27-5B-20 Reinsurance agreements affected. The amendments of this chapter and the additions to this chapter by Act 2021-235 shall apply to all cessions after January 1, 2022, under reinsurance agreements that have an inception, anniversary, or renewal date on or after July 1, 2022. (Act 2021-235, §2.)
Section 27-5B-12 – Accredited or Certified Reinsurer Ceasing to Meet Requirements.
Section 27-5B-12 Accredited or certified reinsurer ceasing to meet requirements. (a) If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the commissioner may suspend or revoke the reinsurer’s accreditation or certification. (b) The commissioner must give the reinsurer notice and opportunity for hearing. The suspension or revocation may not […]
Section 27-5B-13 – Concentration Risk.
Section 27-5B-13 Concentration risk. (a) A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify the commissioner within 30 days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds 50 percent of the domestic ceding […]
Section 27-5B-14 – Asset or Reduction From Liability for Reinsurance Ceded by a Domestic Insurer to an Assuming Insurer Not Meeting the Requirements of Sections 27-5b-3 Through 27-5b-13.
Section 27-5B-14 Asset or reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Sections 27-5B-3 through 27-5B-13. (a) An asset or a reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of Section 27-5B-3, 27-5B-4, […]
Section 27-5B-15 – Qualified u.s. Financial Institutions.
Section 27-5B-15 Qualified U.S. financial institutions. (a) For purposes of subdivision (3) of Section 27-5B-14, a qualified U.S. financial institution means an institution that meets all of the following: (1) Is organized or, in the case of a U.S. office of a foreign banking organization, licensed, under the laws of the United States or any […]
Section 27-5B-1 – Purpose.
Section 27-5B-1 Purpose. The purpose of this chapter is to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally. The Legislature declares its intent is to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom they owe obligations. In furtherance of that state interest, the […]
Section 27-5B-16 – Insolvency Clause.
Section 27-5B-16 Insolvency clause. Except as provided in Section 27-5B-17, no credit shall be allowed, as an admitted asset or deduction from liability, to any ceding insurer for reinsurance placed with a reinsurer qualified under this chapter, unless the reinsurance contract provides, in substance, that in the event of the insolvency of the ceding insurer, […]
Section 27-5B-2 – Reinsurance Permitted.
Section 27-5B-2 Reinsurance permitted. (a) An insurer authorized under this title may accept reinsurance only of such risks and retain risk thereon within such limits as it is otherwise authorized to insure. (b) An insurer authorized under this title may reinsure all, or any part, of any particular risk with any solvent insurer. (Act 2013-209, […]
Section 27-5B-17 – Guaranty Association Election.
Section 27-5B-17 Guaranty association election. Notwithstanding Section 27-5B-16, in the event that a life and health insurance guaranty association has made the election to succeed to the rights and obligations of the insolvent insurer under the contract of reinsurance, the reinsurer’s liability to pay covered reinsured claims shall continue under the contract of reinsurance subject […]