§ 27-6-1.1-5 — Assumption reinsurance agreement; approval; exemptions; notice to policyholders

Indiana § 27-6-1.1-5

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 6: REINSURANCE; INTERINSURANCE
• Ch. 1.1: Reinsurance

Text

(a) A domestic insurer must file any proposed
agreement of assumption reinsurance with the commissioner for the
commissioner's approval. The agreement must be executed by each
insurer in a manner consistent with its articles and bylaws and the
applicable law.
(b) The requirement for filing and approval provided in subsection
(a) is not applicable to an agreement if:
(1) the ceding insurer is not a domestic insurer; and
(2) the reserves and liabilities assumed under the agreement are
not greater than twenty percent (20%) of the corresponding
outstanding reserves and liabilities of the domestic accepting
insurer without regard to the agreement.
(c) The commissioner shall approve a reinsurance agreement within
sixty (60) days after it is filed as provided in subsection (a) if the
commissioner determines that:
(1) the agreement was legally executed by both insurers;
(2) in case one (1) of the parties to the agreement is a foreign or
alien insurer, the agreement received the sanction and approval of
the law of the foreign or alien jurisdiction, if necessary; and
(3) the agreement deals equitably and fairly with the contract and
property rights of insurance, annuity, and endowment policy or
contract holders of both insurers.
(d) The commissioner's approval of any agreement of reinsurance
that is required to be filed as provided in subsection (a) shall be a
condition precedent to the validity of the agreement. On the
commissioner's approval, the agreement shall become effective as of
the date of the agreement or as of such other date as may be specifically
provided in the agreement.
(e) Within the period of forty-five (45) days following the
commissioner's approval of an agreement of assumption reinsurance,
or within the period of forty-five (45) days following the effective date
of an agreement of assumption reinsurance for which the approval of
the commissioner is not required, the accepting insurer shall mail a
written notification to each reinsured insurance, annuity, and
endowment policy or contract holder. The notification must:
(1) specify each policy or contract subject to reinsurance and the
effective date of the reinsurance transaction;
(2) offer to provide a copy of the agreement of assumption of
reinsurance upon the written request of the policy or contract
holder;
(3) state that the accepting insurer assumes all of the rights and
obligations of the ceding insurer with respect to the policies and
contracts that are subject to the agreement of assumption
reinsurance; and
(4) state that the rights and benefits of the policy or contract
holder under the policy or contract that is subject to reinsurance,
including the right to surrender the policy or contract subject to
the terms of the policy or contract, are not affected by the
reinsurance.
(f) This section does not apply to an assumption reinsurance
agreement to which a domestic ceding insurer is a party if the insurer
is the subject of a proceeding under IC 27-9-3.

Legislative History

As added by P.L.260-1983, SEC.1. Amended by P.L.256-1985, SEC.1; P.L.248-1989, SEC.1.