§ 31-1330 — Reinsurer’s liability.

District of Columbia § 31-1330

• Jurisdiction: District of Columbia
• Title 31: Insurance and Securities.
• Ch. 13: Insurers Rehabilitation and Liquidation Procedures.

Text

The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contracts or other agreements. The reinsurance shall be payable under contracts reinsured by the assuming insurer on the basis of reported claims allowed by the Superior Court of the District of Columbia, without diminution because of the insolvency of the ceding insurer. The payments shall be made directly to the ceding insurer or to its domiciliary liquidator, except where:

(1) The contracts or other written agreements specifically provide for another payee of the reinsurance in the event of the insolvency of the ceding insurer; or

(2) The assuming insurer, with the consent of the direct insureds, has assumed the policy obligations of the ceding insurer as the direct obligation of the assuming insurer to the payees under such policies and in substitution for the obligations of the ceding insurer to the payees.

Legislative History

Oct. 15, 1993, D.C. Law 10-35, § 31, 40 DCR 5773; Oct. 21, 2000, D.C. Law 13-185, § 2, 47 DCR 7068