SECTION 365:25-7-70. Reinsurance contract

  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 365:25-7-62, 365:25-7-63, 365:25-7-64, 365:25-7-65,365:25-7-67 or 365:25-7-73 or otherwise in compliance with Section 5122 of the Act after the adoption of this part unless the reinsurance agreement:

(1)   Includes a proper insolvency clause, which states that reinsurance is payable directly to the liquidator or successor without diminution regardless of the status of the ceding company, pursuant to Section 711 of the Insurance Code; and

(2)   Includes a provision pursuant to Section 5122(H) of the Act whereby the assuming insurer, if an unauthorized assuming insurer, has submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States, 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

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

[Source: Added at 9 Ok Reg 3971, eff 9-3-92 (emergency); Added at 10 Ok Reg 1487, eff 5-1-93; Amended at 34 Ok Reg 351, eff 12-16-16 (emergency); Amended at 34 Ok Reg 1687, eff 9-15-17]