North Dakota § 26.1-06.1-31 Reinsurer's liability

North Dakota Statutes

§ 26.1-06.1-31 — Reinsurer's liability

North Dakota § 26.1-06.1-31

Title 26.1Insurance

Ch. 26.1-06.1Insurance Company Rehabilitation and Liquidation

This text of North Dakota § 26.1-06.1-31 (Reinsurer's liability) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 26.1-06.1-31 (2026).

Text

1.The amount recoverable by the liquidator from reinsurers may not be reduced as a result of the delinquency proceedings unless the reinsurance contract provides, in substance, that in the event of the insolvency of the ceding insurer, the reinsurance must be payable under one or more contracts reinsured by the assuming insurer on the basis of reported claims allowed by the liquidation court or proof of payment of the claim by a guaranty association without diminution because of the insolvency of the ceding insurer. The payments must be made directly to the ceding insurer or to the ceding insurer's domiciliary liquidator except if:

a.The contract or other written agreement specifically provides another payee of such reinsurance in the event of the insolvency of the ceding insurer; or b.

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1. The amount recoverable by the liquidator from reinsurers may not be reduced as a
result of the delinquency proceedings unless the reinsurance contract provides, in
substance, that in the event of the insolvency of the ceding insurer, the reinsurance
must be payable under one or more contracts reinsured by the assuming insurer on

the basis of reported claims allowed by the liquidation court or proof of payment of the
claim by a guaranty association without diminution because of the insolvency of the
ceding insurer. The payments must be made directly to the ceding insurer or to the
ceding insurer's domiciliary liquidator except if:
a. The contract or other written agreement specifically provides another payee of
such reinsurance in the event of the insolvency of the ceding insurer; or
b. The assuming insurer, with the consent of the direct insured, has assumed such
policy obligations of the ceding insurer as direct obligations of the assuming
insurer to the payees under the policies and in substitution for the obligations of
the ceding insurer to such payees.
2. Notwithstanding subsection 1, 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, the reinsurer's liability to pay covered reinsured claims
continues under the contract of reinsurance, subject to the payment to the reinsurer of
the reinsurance premiums for such coverage. Payment for such reinsured claims may
only be made by the reinsurer pursuant to the direction of the guaranty association or
the guaranty association's designated successor. Any payment made at the direction
of the guaranty association or the guaranty association's designated successor by the
reinsurer will discharge the reinsurer of all further liability to any other party for the
claim payment.