Mich. Admin. Code R. 500.1127 - Reinsurance contract

Rule 7. Credit must 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 1103 of the code, MCL 500.1103, not including section 1103(5), or section 1105 of the code, MCL 500.1105, and applicable rules, or otherwise in compliance with section 1103 of the code, MCL 500.1103, after the effective date of these rules, unless the reinsurance agreement includes all of the following:

(a) 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.

(b) A provision pursuant to section 1103 of the code, MCL 500.1103, whereby the assuming insurer, if an unauthorized assuming insurer, has submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States, has agreed to comply with all requirements necessary to give the court or panel jurisdiction, has designated an agent upon whom service of process may be served, and has agreed to abide by the final decision of the court or panel.

Notes

Mich. Admin. Code R. 500.1127

1996 AC; 2019 AACS; 2021 MR 10, Eff. 5/18/2021