Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 130.00 - Credit For Reinsurance
Section 130.16 - Reinsurance Contract
Current through Register 1531, September 27, 2024
Credit will not be granted, nor an asset or reduction from liability allowed, to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of 211 CMR 130.03 through 130.08 or 130.12 or otherwise in compliance with M.G.L. c. 175, § 20A(1) after the adoption of 211 CMR 130.00, unless the reinsurance agreement:
(1) Includes a proper insolvency clause which stipulates that reinsurance is payable directly to the liquidator or successor without diminution, regardless of the status of the ceding company, pursuant to M.G.L. c. 175, § 20A(4); and
(2) Includes a provision pursuant to M.G.L. c. 175, § 20A(1) whereby the assuming insurer, if an unauthorized assuming insurer, has submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States, has agreed to comply with all requirements necessary to give the court or panel jurisdiction, has designated an agent upon whom service of process may be effected, and has agreed to abide by the final decision of the court or panel.
(3) Includes a proper reinsurance intermediary clause, if applicable, which stipulates that the credit risk for the intermediary is carried by the assuming insurer in accordance with the provisions of M.G.L. c. 175, §§ 177M through 177W, governing reinsurance intermediaries.
