Financial statement exceptions

Notwithstanding section 45-04-11-01, licensed life insurers may continue to reduce liabilities or establish assets in financial statements filed with this department for reinsurance ceded under types of reinsurance agreements described in section 45-04-11-01, provided: 1. The agreements were executed and in force prior to October 1, 1989; 2. No new business is ceded under the agreements after October 1, 1989; 3. The reduction of the liability or the asset established for the reinsurance ceded is reduced to zero by December 31, 1992, or such later date approved by the commissioner as a result of an application made by the ceding insurer prior to December 31, 1989; 4. The reduction of the liability or the establishment of the asset is otherwise permissible under all other applicable provisions of the insurance law or rules, including actuarial interpretations or standards adopted by the department; and 5. The insurance department is notified, within sixty days following October 1, 1989, of the existence of such reinsurance agreements and all corresponding credits taken in the ceding insurer's 1988 annual statement.