Insurance Law 1321 — Legislation

Legislation Search OpenLegislation Statutes Search Term Search icon Search previous SECTION 1320 Deposits by alien insurers; statutory deposits up ARTICLE 13 Assets and Deposits next SECTION 1322 Risk-based capital for life insurance companies, accident and health insurance companies, corporations organized pursuant to article fort... Viewing most recent revision (from 2014-09-22) View historical revision as of: -- Choose a Date -- 2014-09-22 Share Facebook Email SECTION 1321 Commutation of reinsurance agreements Insurance (ISC) CHAPTER 28, ARTICLE 13 § 1321. Commutation of reinsurance agreements. (a) If the superintendent finds that a domestic insurer or a United States branch of an alien insurer entered through this state is impaired or insolvent within the meaning of this chapter, the superintendent may permit such insurer to utilize commutations of reinsurance agreements to eliminate the impairment or insolvency, provided that such commutations are approved by the superintendent in accordance with standards prescribed by regulation. (b) For purposes of this section, commutation of a reinsurance agreement is the elimination of all present and future obligations between the parties, arising from the reinsurance agreement, in exchange for a current consideration. (c) Nothing herein contained shall preclude the superintendent from proceeding against such insurer under any other provision of this chapter.