378.613. Reinsurance agreements, allowed--limitations. - Missouri Statutes

Reinsurance agreements, allowed--limitations.

378.613. 1. A domestic society may, by a reinsuranceagreement, cede any individual risk or risks in whole or in partto an insurer (other than another fraternal benefit society)having the power to make such reinsurance and authorized to dobusiness in this state, or if not so authorized, one which isapproved by the director, but no such society may reinsuresubstantially all of its insurance in force without the writtenpermission of the director. It may take credit for the reserveson such ceded risks to the extent reinsured, but no credit shallbe allowed as an admitted asset or as a deduction from liability,to a ceding society for reinsurance made, ceded, renewed, orotherwise becoming effective after January 1, 1993, unless thereinsurance is payable by the assuming insurer on the basis ofthe liability of the ceding society under the contract orcontracts reinsured without diminution because of the insolvencyof the ceding society. The provisions of section 375.246, RSMo,shall also apply insofar as not in conflict herewith.

2. Notwithstanding the limitation in subsection 1 of thissection, a society may reinsure the risks of another society in aconsolidation or merger approved by the director under section378.614.

(L. 1992 S.B. 831)

Effective 1-1-93