Utah Admin. Code R590-173-15 - Required Provisions in a Reinsurance Contract

Credit for reinsurance may not be granted, and an asset or reduction from liability allowed, to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of this rule or Section 31A-17-404 unless the reinsurance agreement:

(1) includes a proper insolvency clause, stipulating that reinsurance is payable directly to the liquidator or successor without diminution regardless of the status of the ceding company;

(2) includes a provision that the assuming insurer, if an authorized assuming insurer:

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

(b) complies with all requirements necessary to give the court or panel jurisdiction;

(c) designates an agent who service of process may be made upon; and

(d) agrees to abide by the final decision of the court or panel; and

(3) includes a proper reinsurance intermediary clause stipulating that the credit risk for the intermediary is carried by the assuming insurer.

Notes

Utah Admin. Code R590-173-15

Adopted by Utah State Bulletin Number 2022-12, effective 6/7/2022