(a)A domestic insurer may reinsure all or substantially
all of its business in force, or all or substantially all of a
major class thereof, with another insurer, stock or mutual, by
an agreement of bulk reinsurance after compliance with this
section. No agreement is effective unless it is filed with the
commissioner and he approves it in writing.
(b)The commissioner shall approve an agreement within a
reasonable time after filing if he finds that:
(i)The plan and agreement are fair and equitable to
each insurer and to the policyholders involved;
(ii)The reinsurance, if carried out, would not
substantially reduce the protection or service to the
policyholders of any domestic insurer involved;
(iii)The agreement embodies adequate provisions by
which the reinsuring insurer is liable to t
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(a) A domestic insurer may reinsure all or substantially
all of its business in force, or all or substantially all of a
major class thereof, with another insurer, stock or mutual, by
an agreement of bulk reinsurance after compliance with this
section. No agreement is effective unless it is filed with the
commissioner and he approves it in writing.
(b) The commissioner shall approve an agreement within a
reasonable time after filing if he finds that:
(i) The plan and agreement are fair and equitable to
each insurer and to the policyholders involved;
(ii) The reinsurance, if carried out, would not
substantially reduce the protection or service to the
policyholders of any domestic insurer involved;
(iii) The agreement embodies adequate provisions by
which the reinsuring insurer is liable to the original insureds
for any loss or damage occurring under the policies reinsured in
accordance with the original terms of the policies, and the
reinsuring insurer shall furnish each insured with a certificate
evidencing assumption of liability;
(iv) The assuming reinsurer is authorized to transact
insurance in this state, or is qualified for authorization and
will appoint the commissioner and his successors as its
irrevocable attorney for service of process, as long as any
policy reinsured or claim thereunder remains in force or
outstanding;
(v) The reinsurance would not materially tend to
lessen competition in the insurance business in this state or
elsewhere as to the kinds of insurance involved, and would not
materially tend to create any monopoly as to that business; and
(vi) The proposed bulk reinsurance is free of other
reasonable objections.
(c) If the commissioner does not approve the agreement he
shall immediately notify each insurer involved, in writing,
specifying his reasons for disapproval.
(d) If for reinsurance of any of the business in force of
a mutual insurer at a time when the insurer's surplus is not
impaired, the plan and agreement for reinsurance shall be
approved by vote of not less than two-thirds (2/3) of the mutual
insurer's members voting thereon at a meeting of members called
for that purpose, pursuant to any reasonable notice and
procedure provided for in the agreement. If a life insurer, the
right to vote may be limited to members whose policies are other
than term or group policies and have been in effect for more
than one (1) year.
(e) No director, officer, agent or employee of any insurer
party to the reinsurance, nor any other person, shall receive
any compensation for arranging the bulk reinsurance other than
as provided in the agreement submitted to and approved by the
commissioner.