§ 27-4.2-4 - Written agreements. - Rhode Island Statutes

SECTION 27-4.2-4

   § 27-4.2-4  Written agreements. – (a) No reinsurance agreement or amendment to any agreement may be used toreduce any liability or to establish any asset in any financial statement filedwith the insurance division of the department of business regulation, unlessthe agreement, amendment, or a binding letter of intent has been duly executedby both parties no later than the "as of date" of the financial statement.

   (b) In the case of a letter of intent, a reinsuranceagreement or an amendment to a reinsurance agreement must be executed within areasonable period of time, not exceeding ninety (90) days from the executiondate of the letter of intent, in order for credit to be granted for thereinsurance ceded.

   (c) The reinsurance agreement shall contain provisions whichprovide that:

   (1) The agreement shall constitute the entire agreementbetween the parties with respect to the business being reinsured and that thereare no understandings between the parties other than as expressed in theagreement; and

   (2) Any change or modification to the agreement shall be nulland void unless made by amendment to the agreement and signed by both parties.