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 45-03-07.1-01, 45-03-07.1-02,
45-03-07.1-03, 45-03-07.1-04, 45-03-07.1-04.1, 45-03-07.1-05, or 45-03-07.1-06
or otherwise in compliance with North Dakota Century Code section 26.1-31.2-01
after October 1, 1995, unless the reinsurance agreement:
1. Includes 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, pursuant to
North Dakota Century Code section 26.1-06.1-31; and
2. Includes a provision pursuant to North
Dakota Century Code section 26.1-31.2-01 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 effected, and has agreed to abide by the final decision of the
court or panel; and
3. Includes a
proper reinsurance intermediary clause, if applicable, which stipulates that
the credit risk for the intermediary is carried by the assuming
insurer.
Notes
N.D. Admin Code
45-03-07.1-10
Effective October 1,
1995; amended effective October 1, 2002.
Amended by
Administrative
Rules Supplement 2016-359, January 2016, effective
1/1/2016.
Amended by
Administrative
Rules Supplement 2022-384, April 2022, effective
4/1/2022.
General Authority: NDCC 26.1-31.2-04
Law Implemented: NDCC 26.1-31.2
