3 AAC 21.635 - General provisions for a reinsurance agreement

(a) The director will not grant credit to a ceding insurer for reinsurance with an assuming insurer unless the reinsurance agreement between the ceding insurer and assuming insurer includes

(1) an insolvency clause stating that the assuming insurer will remain liable for a claim submitted under a reinsurance agreement by a ceding insurer even though the ceding insurer is in receivership or liquidation at the time the claim is submitted;

(2) repealed 11/21/2004;

(3) a provision requiring an unauthorized assuming insurer to submit to the jurisdiction of an alternative dispute resolution panel that is acceptable to the director or a court of competent jurisdiction within the United States, to comply with all requirements necessary to give the panel or court jurisdiction, to designate an agent upon whom service of process may be given, and to abide by the final decision of the panel or court;

(4) a provision that the reinsurance agreement and any related trust agreement or letter of credit constitute the entire contract between the parties with respect to the insurance being reinsured and that there are no understandings or agreements between the parties other than those expressed in these documents; and

(5) a provision that a change or modification to the agreement is void unless it is made by a written amendment to the agreement and signed by both parties.

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

(b) Repealed 11/21/2004.

Notes

3 AAC 21.635

Eff. 11/25/94, Register 132; am 11/21/2004, Register 172; am 12/26/2019, Register 232, January 2020

Authority:AS 21.06.090

AS 21.12.020