760 IAC 1-56-13 Reinsurance contract

Sec. 13. Credit will not be granted, nor an asset or reduction from liability allowed, to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of section 4, 5, 6, 7, 7.5, 7.8, or 9 of this rule or otherwise in compliance with IC 27-6-10.1-2 after the adoption of this rule unless the reinsurance agreement includes the following: (1) A proper insolvency clause, which stipulates that reinsurance is payable directly to the liquidator or successor without diminution regardless of the status of the ceding company, under IC 27-9. (2) A provision under IC 27-6-10.1-3, whereby the assuming insurer, if an unauthorized assuming insurer has: (A) submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States; (B) agreed to comply with all requirements necessary to give such court or panel jurisdiction; (C) designated an agent upon whom service of process may be effected; and (D) agreed to abide by the final decision of such court or panel. (3) A proper reinsurance intermediary clause, if applicable, that stipulates that the credit risk for the intermediary is carried by the assuming insurer.