§ 27-11-5-3 — Reinsurance agreements

Indiana § 27-11-5-3

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 11: FRATERNAL BENEFIT SOCIETIES
• Ch. 5: Governance

Text

(a) A domestic society may by a reinsurance
agreement cede any individual risk or risks in whole or in part to an
insurer (other than another fraternal benefit society) having the power
to make the reinsurance and authorized to do business in this state or,
if not so authorized, one that is approved by the commissioner, but no
society may reinsure substantially all of its insurance in force without
the written permission of the commissioner. It may take credit for the
reserves on the ceded risks to the extent reinsured, but no credit shall
be allowed as an admitted asset or as a deduction from liability to a
ceding society for reinsurance made, ceded, renewed, or otherwise
becoming effective after December 31, 1985, unless the reinsurance is
payable by the assuming insurer on the basis of the liability of the
ceding society under the contract or contracts reinsured without
diminution because of the insolvency of the ceding society.
(b) Notwithstanding the limitation in subsection (a), a society may
reinsure the risks of another society in a consolidation or merger
approved by the commissioner under section 4 of this chapter.

Legislative History

As added by P.L.262-1985, SEC.1.