760 IAC 1-56-13 - Reinsurance contract

Authority: IC 27-1-3-7; IC 27-6-10.1-5

Affected: IC 27-6-10.1; IC 27-9

Sec. 13.

Credit will not be granted, nor an asset or reduction from liability allowed, to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of section 4, 5, 6, 7, 7.5, 7.8, or 9 of this rule or otherwise in compliance with IC 27-6-10.1-2 after the adoption of this rule unless the reinsurance agreement includes the following:

(1) A proper insolvency clause, which stipulates that reinsurance is payable directly to the liquidator or successor without diminution regardless of the status of the ceding company, under IC 27-9.

(2) A provision under IC 27-6-10.1-3, whereby the assuming insurer, if an unauthorized assuming insurer has:

(A) submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States;

(B) agreed to comply with all requirements necessary to give such court or panel jurisdiction;

(C) designated an agent upon whom service of process may be effected; and

(D) agreed to abide by the final decision of such court or panel.

(3) A proper reinsurance intermediary clause, if applicable, that stipulates that the credit risk for the intermediary is carried by the assuming insurer.

Notes

760 IAC 1-56-13

Department of Insurance; 760 IAC 1-56-13; filed Nov 14, 1994, 9:50 a.m.: 18 IR 877; readopted filed Sep 14, 2001, 12:22 p.m.: 25 IR 531; readopted filed Nov 27, 2007, 4:01 p.m.: 20071226-IR-760070717RFA; readopted filed Nov 26, 2013, 3:43 p.m.: 20131225-IR-760130479RFA; filed Dec 16, 2013, 9:14 a.m.: 20140115-IR-760130006FRA Readopted filed 11/19/2019, 9:18 a.m.: 20191218-IR-760190497RFA Filed 6/2/2022, 3:33 p.m.: 20220629-IR-760210519FRA