§27-1.1-10  Payment by assuming company. –


Published: 2015

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TITLE 27

Insurance

CHAPTER 27-1.1

Credit for Reinsurance Act

SECTION 27-1.1-10



   § 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

company.



History of Section.

(P.L. 2015, ch. 82, § 18; P.L. 2015, ch. 105, § 18.)