D.C. Mun. Regs. tit. 26, r. 26-A2811

Current through Register 71, No. 45, November 7, 2024

Rule 26-A2811 - REINSURANCE CONTRACT

2811.1

Credit will not be granted to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of Sections 2801, 2802, 2803, 2804 or 2806 of this regulation or otherwise in compliance with section 2 of the Law on Credit for Reinsurance Act of 1993, D.C. Code Official Code section 31-501, after the adoption of this regulation unless the reinsurance agreement:

(a) Includes a proper insolvency clause, which stipulates that reinsurance is payable directly to the liquidator successor without diminution regardless of the status of the ceding company;

(b) Includes a provision pursuant to Section 2(h) of the Law on Credit for Reinsurance Act of 1993, D.C. Official Code Section 31-501(h),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; and

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

D.C. Mun. Regs. tit. 26, r. 26-A2811

Final Rulemaking published at 43 DCR 2318 (May 3, 1996); amended and renumbered from 26-A2810 by Final Rulemaking published at 68 DCR 6518 (6/25/2021)