§ 58-24-60. Reinsurance. - North Carolina Statutes

§58‑24‑60.  Reinsurance.

(a)        A domestic societymay, by a reinsurance agreement, cede any individual risk or risks in whole orin part to an insurer (other than another fraternal benefit society) having thepower to make such reinsurance and authorized to do business in this State, orif not so authorized, one which is approved by the Commissioner, but no suchsociety may reinsure substantially all of its insurance in force without thewritten permission of the Commissioner.  It may take credit for the reserves onsuch ceded risks to the extent reinsured, but no credit shall be allowed as anadmitted asset or as a deduction from liability, to a ceding society forreinsurance made, ceded, renewed, or otherwise becoming effective after January1, 1988, unless the reinsurance is payable by the assuming insurer on the basisof the liability of the ceding society under the contract or contractsreinsured without diminution because of the insolvency of the ceding society.

(b)        Notwithstanding thelimitation in subsection (a), a society may reinsure the risks of anothersociety in a consolidation or merger approved by the Commissioner under G.S. 58‑24‑65.(1987, c. 483, s. 2; 1991, c. 720, s. 4.)