N.J. Admin. Code § 11:28-1.14

Current through Register Vol. 57, No. 1, January 6, 2025

Section 11:28-1.14 - Reinsurance

(a) Any captive authorized to do business in this State may take credit for reserves on risks ceded to a reinsurer subject to the following limitations:

1. No credit shall be allowed for reinsurance where the reinsurance contract does not result in the complete transfer of the risk or liability to the reinsurer.

2. No credit shall be allowed, as an asset or a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract reinsured without diminution because of the insolvency of the ceding insurer.

3. Reinsurance under this section shall be effected through a written agreement of reinsurance setting forth the terms, provisions and conditions governing such reinsurance.

N.J. Admin. Code § 11:28-1.14