§ 27-25-13 - Reinsurance. - Rhode Island Statutes

SECTION 27-25-13

   § 27-25-13  Reinsurance. – (a) A domestic society may, by a reinsurance agreement, cede any individualrisk or risks in whole or in part to an insurer, other than another fraternalbenefit society, having the power to make reinsurance and authorized to dobusiness in this state, or, if not so authorized, one which is approved by thecommissioner of insurance, but no society may reinsure substantially all of itsinsurance in force without the written permission of the commissioner ofinsurance. It may take credit for the reserves on the ceded risks to the extentreinsured, but no credit shall be allowed as an admitted asset or as adeduction from liability, to a ceding society for reinsurance made, ceded, orrenewed 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 the limitation in subsection (a) of thissection, a society may reinsure the risks of another society in a consolidationor merger approved by the commissioner of insurance under § 27-25-14.