§ 10-3-531 — Reinsurers' liability

Colorado § 10-3-531

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Regulation of Insurance Companies

Text

(1) Except as otherwise provided in
subsection (2) of this section, the amount recoverable by the liquidator from
reinsurers shall be payable under a contract or contracts reinsured by the reinsurer
on the basis of reported claims allowed by the liquidation court without diminution
as a result of the insolvency of the ceding insurer. Such payment shall be made
directly to the ceding insurer or to its domiciliary liquidator unless the contract or
other written agreement specifically provides another payee of such reinsurance in
the event of the insolvency of the ceding insurer.

(2) Notwithstanding subsection (1) of this section, if a life and health
insurance guaranty association has elected to succeed to the rights and obligations
of the insolvent insurer under the contract of reinsurance, whether pursuant to
section 10-20-108 (13)(h) or otherwise, then the reinsurer's liability to pay covered
reinsured claims shall continue under the contract of reinsurance, subject to the
payment to the reinsurer of the reinsurance premiums for such coverage. Payment
for such reinsured claims shall only be made by the reinsurer pursuant to the
direction of the guaranty association or its designated successor. Any payment
made at the direction of the guaranty association or its designated successor by
the reinsurer shall discharge the reinsurer of all further liability to any other party
for such claim payment.

Legislative History

Source: L. 92: Entire part R&RE, p. 1466, � 14, effective July 1. L. 2001: Entire section amended, p. 230, � 2, effective July 1.