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 […]
Section 27-5B-3 – Credit Allowed a Domestic Ceding Insurer.
Section 27-5B-3 Credit allowed a domestic ceding insurer. (a) Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a reduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of Section 27-5B-4, 27-5B-5, 27-5B-6, 27-5B-7, 27-5B-8, 27-5B-8.1, or 27-5B-9. (b) The commissioner may adopt […]
Section 27-5B-18 – Notice by Domiciliary Liquidator.
Section 27-5B-18 Notice by domiciliary liquidator. The reinsurance agreement may provide that the domiciliary liquidator of an insolvent ceding insurer shall give written notice to the assuming insurer of the pendency of a claim against the ceding insurer on the contract within a reasonable time after the claim is filed in the liquidation proceeding. During […]
Section 27-5B-4 – Licensed Reinsurer.
Section 27-5B-4 Licensed reinsurer. Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is licensed to transact insurance or reinsurance in this state. (Act 2013-209, p. 463, §1.)
Section 27-5B-5 – Accredited Reinsurer.
Section 27-5B-5 Accredited reinsurer. Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is accredited by the commissioner as a reinsurer in this state. In order to be eligible for accreditation, a reinsurer must do all of the following: (1) File with the commissioner evidence of its submission to this […]