§ 1321 — Commutation of reinsurance agreements

§ 1321. Commutation of reinsurance agreements. (a) If the\nsuperintendent finds that a domestic insurer or a United States branch\nof an alien insurer entered through this state is impaired or insolvent\nwithin the meaning of this chapter, the superintendent may permit such\ninsurer to utilize commutations of reinsurance agreements to eliminate\nthe impairment or insolvency, provided that such commutations are\napproved by the superintendent in accordance with standards prescribed\nby regulation.\n (b) For purposes of this section, commutation of a reinsurance\nagreement is the elimination of all present and future obligations\nbetween the parties, arising from the reinsurance agreement, in exchange\nfor a current consideration.\n (c) Nothing herein contained shall preclude the superintendent from\nproceeding against such insurer under any other provision of this\nchapter.\n