20-1088. Limit of risk
Domestic life and disability reinsurers may be formed, with capital and surplus as
specified in sections 20-1085 and 20-1086 to accept any risk as a reinsurer under which
the maximum possible benefits payable on the death or on the disability of any one
insured shall not exceed five thousand dollars if the excess over three thousand dollars
is reinsured by noncancellable reinsurance authorized under section 20-261. When the
reinsurer's paid-in capital reaches one hundred thousand dollars, the reinsurer may
reinsure risks without the restrictions of this section and may reinsure as otherwise
provided for pursuant to this title. Any risk accepted pursuant to this section shall be
a risk under which the ceding life or disability insurer remains liable for the payment
of all policyholder claims.
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