R590-173-15. Required Provisions in a Reinsurance Contract

Credit for reinsurance may not be granted, and an asset or reduction from liability allowed, to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of this rule or Section 31A-17-404 unless the reinsurance agreement: (1) includes a proper insolvency clause, stipulating that reinsurance is payable directly to the liquidator or successor without diminution regardless of the status of the ceding company; (2) includes a provision that the assuming insurer, if an authorized assuming insurer: (a) submits to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States; (b) complies with all requirements necessary to give the court or panel jurisdiction; (c) designates an agent who service of process may be made upon; and (d) agrees to abide by the final decision of the court or panel; and (3) includes a proper reinsurance intermediary clause stipulating that the credit risk for the intermediary is carried by the assuming insurer.