Common use of Reinsurance Clause in Contracts

Reinsurance. 1. A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance agreements and authorized to do business in this state, or if not so authorized, one which is approved by the commissioner; but a society shall not reinsure substantially all of its insurance in force without the written permission of the commissioner. It may take credit for the reserves on ceded risks to the extent reinsured, but credit shall not be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after January 1, 1991, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.

Reinsurance. 1. A domestic society may, may by a reinsurance agreement, agreement cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance agreements and authorized to do business in this state, or if not so authorized, one which is approved by the commissioner; , but a no society shall not may reinsure substantially all of its insurance in force without first obtaining the written permission of the commissioner. It A society may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall not may be allowed as an admitted asset or as a deduction from liability, liability to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after January 1December 31, 19911987, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.

Reinsurance. 1. (a) A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, insurer (other than another fraternal benefit society, ) having the power to make such reinsurance agreements and authorized to do business in this stateState, or if not so authorized, one which is approved by the commissioner; Commissioner, but a no such society shall not may reinsure substantially all of its insurance in force without the written permission of the commissionerCommissioner. It may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall not be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after January 1, 19911988, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.