6.6.3813    REQUIREMENTS FOR REINSURANCE CONTRACTS OR AGREEMENTS

(1) Credit will not be granted, nor an asset or reduction from liability allowed, to a ceding insurer for reinsurance pursuant to 33-2-1216, or 33-2-1217, MCA, and these rules unless the reinsurance contract or agreement includes:

(a) a clause which requires that the reinsurance is payable directly to the liquidator or successor by the assuming insurer without consideration of the insolvency of the ceding insurer;

(b) a provision whereby the assuming insurer has submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States, and has agreed to comply with all requirements necessary to give such court or panel jurisdiction, has designated an agent upon whom service of process may be effected, and has agreed to abide by the final decision of such court or panel; and

(c) a proper reinsurance intermediary clause, if applicable, which stipulates that the credit risk for the intermediary is carried by the assuming insurer.

 

History: 33-1-313, 33-2-1517, MCA; IMP, 33-2-1216, 33-2-1217, MCA; NEW, 2016 MAR p. 2186, Eff. 11/26/16; AMD, 2017 MAR p. 2432, Eff. 1/1/18.