(a) Any captive insurance company authorized to do business in this state may take credit for reserves on risks ceded to a reinsurer, except that no credit shall be allowed:
(1) For reinsurance in any reinsurer that has been disapproved by the commissioner;
(2) As an asset or a deduction from liability, to any ceding insurer for reinsurance, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract reinsured without diminution because of the insolvency of the ceding insurer;
(3) For reinsurance in a nonadmitted reinsurer, unless the nonadmitted reinsurer designates the commissioner as agent for service of process in any action arising out of or in connection with the reinsurance;
(4) For reinsurance in an insurer not authorized to transact business in at least one (1) state of the United States, except in the case of and to the extent that the premium, plus the commission, is held in trust or withheld by the ceding insurer until such time as the premium is earned, the losses paid, and the resulting profit or loss to the reinsurer determined;
(5) For reinsurance where the reinsurance contract does not result in the absolute transfer to the reinsurer of the risk or liability; and
(6) As an asset or a deduction from liability, where the reinsurance contract involves the possible repayment of tentative commissions by the ceding insurer, and the credit shall be allowed only for the guaranteed portion of the commission received.
(b) The commissioner has the discretion to require that complete copies of all reinsurance treaties and contracts be filed with the commissioner.
(c) Notwithstanding subsection (a), any captive insurance company may reinsure all of its risks in any reinsurer approved by the commissioner, and full credit for reserves on the risks so ceded shall be allowed.
(a) Any captive insurance company authorized to do business in this state may take credit for reserves on risks ceded to a reinsurer, except that no credit shall be allowed:
(1) For reinsurance in any reinsurer that has been disapproved by the commissioner;
(2) As an asset or a deduction from liability, to any ceding insurer for reinsurance, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract reinsured without diminution because of the insolvency of the ceding insurer;
(3) For reinsurance in a nonadmitted reinsurer, unless the nonadmitted reinsurer designates the commissioner as agent for service of process in any action arising out of or in connection with the reinsurance;
(4) For reinsurance in an insurer not authorized to transact business in at least one (1) state of the United States, except in the case of and to the extent that the premium, plus the commission, is held in trust or withheld by the ceding insurer until such time as the premium is earned, the losses paid, and the resulting profit or loss to the reinsurer determined;
(5) For reinsurance where the reinsurance contract does not result in the absolute transfer to the reinsurer of the risk or liability; and
(6) As an asset or a deduction from liability, where the reinsurance contract involves the possible repayment of tentative commissions by the ceding insurer, and the credit shall be allowed only for the guaranteed portion of the commission received.
(b) The commissioner has the discretion to require that complete copies of all reinsurance treaties and contracts be filed with the commissioner.
(c) Notwithstanding subsection (a), any captive insurance company may reinsure all of its risks in any reinsurer approved by the commissioner, and full credit for reserves on the risks so ceded shall be allowed.
(a) Any captive insurance company authorized to do business in this state may take credit for reserves on risks ceded to a reinsurer, except that no credit shall be allowed:
(1) For reinsurance in any reinsurer that has been disapproved by the commissioner;
(2) As an asset or a deduction from liability, to any ceding insurer for reinsurance, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract reinsured without diminution because of the insolvency of the ceding insurer;
(3) For reinsurance in a nonadmitted reinsurer, unless the nonadmitted reinsurer designates the commissioner as agent for service of process in any action arising out of or in connection with the reinsurance;
(4) For reinsurance in an insurer not authorized to transact business in at least one (1) state of the United States, except in the case of and to the extent that the premium, plus the commission, is held in trust or withheld by the ceding insurer until such time as the premium is earned, the losses paid, and the resulting profit or loss to the reinsurer determined;
(5) For reinsurance where the reinsurance contract does not result in the absolute transfer to the reinsurer of the risk or liability; and
(6) As an asset or a deduction from liability, where the reinsurance contract involves the possible repayment of tentative commissions by the ceding insurer, and the credit shall be allowed only for the guaranteed portion of the commission received.
(b) The commissioner has the discretion to require that complete copies of all reinsurance treaties and contracts be filed with the commissioner.
(c) Notwithstanding subsection (a), any captive insurance company may reinsure all of its risks in any reinsurer approved by the commissioner, and full credit for reserves on the risks so ceded shall be allowed.
