§ 27-25-13. Reinsurance.
(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 reinsurance and authorized to do business in this state, or, if
not so authorized, one which is approved by the commissioner of insurance, but no
society may reinsure substantially all of its insurance in force without the written
permission of the commissioner of insurance. 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 d
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§ 27-25-13. Reinsurance.
(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 reinsurance and authorized to do business in this state, or, if
not so authorized, one which is approved by the commissioner of insurance, but no
society may reinsure substantially all of its insurance in force without the written
permission of the commissioner of insurance. 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, or renewed 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) of this section, a society may reinsure
the risks of another society in a consolidation or merger approved by the commissioner
of insurance under § 27-25-14.