Credit for Reinsurance Act
§ 27-1.1-10 Payment by assuming company.
(a) No credit shall be allowed for reinsurance unless the reinsurance agreement
provides that payments by the assuming company shall be made directly to the
ceding company or to its liquidator, receiver, or statutory successor, except
where the contract specifically provides direct payment of the reinsurance to
the insured or a claimant on behalf of the insured in the event of the
insolvency of the ceding company, or where the assuming company, with the
consent of the direct insured or insureds, has assumed the policy obligations
of the ceding company to the payees under the policies and in substitution for
the obligations of the ceding company to the payees.
(b) Except as provided in this section, no assuming company
may pay or settle, or agree to pay or settle, any policy claim, or any portion
of a claim, directly to or with a policyholder of any ceding company if an
order of rehabilitation or liquidation has been entered against the ceding
History of Section.
(P.L. 2015, ch. 82, § 18; P.L. 2015, ch. 105, § 18.)