Illinois Administrative Code
Title 50 - INSURANCE
Part 1103 - LIFE REINSURANCE AGREEMENTS
Section 1103.40 - Written Agreements

Universal Citation: 50 IL Admin Code ยง 1103.40

Current through Register Vol. 48, No. 12, March 22, 2024

a) No reinsurance agreement or amendment to any agreement shall be used to reduce any liability or to establish any asset in any financial statement filed with the Division, unless the agreement or amendment or a binding letter of intent has been duly executed by both parties no later than the "as of date" of the financial statement.

b) In the case of a letter of intent, a reinsurance agreement or an amendment to a reinsurance agreement must be executed within a reasonable period of time, not exceeding 90 days from the execution date of the letter of intent, in order for credit to be granted for the reinsurance ceded.

c) The reinsurance agreement shall contain provisions that:

1) The agreement shall constitute the entire agreement between the parties with respect to the business being reinsured thereunder and that there are no understandings between the parties other than as expressed in the agreement; and

2) Any change or modification to the agreement shall be null and void unless made by amendment to the agreement and signed by both parties.

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