Ala. Admin. Code r. 482-1-156-.14

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-156-.14 - Reinsurance Contract

Credit will not be granted, nor an asset or reduction for liability allowed, to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of Rules 482-1-156-.04, 482-1-156-.05, 482-1-156-.06, 482-1-156-.07, 482-1-156-.08, 482-1-156-.08.1, or 482-1-156-.09 or otherwise in compliance with the Act after the adoption of this chapter 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, pursuant to Sections 27-5B-16 and 27-32-39, Code of Ala. 1975.

(b) A provision pursuant to the Act 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 such 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 such court or panel.

(c) Includes a proper reinsurance intermediary clause, if applicable, which stipulates that the credit risk for the intermediary is carried by the assuming insurer.

Ala. Admin. Code r. 482-1-156-.14

New Rule: October 9, 2013; effective January 1, 2014. Filed with LRS October 9, 2013. Rule is not subject to the Alabama Administrative Procedure Act.

Amended by Alabama Administrative Monthly Volume XXXIX, Issue No. 09, June 30, 2021, eff. 1/1/2022.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-5B-1, et seq.