Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-63 - CREDIT FOR REINSURANCE
Section 0780-01-63-.14 - REINSURANCE CONTRACT
Current through September 24, 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 Rule 0780-01-63-.03, Rule 0780-01-63-.04, Rule 0780-01-63-.05, Rule 0780-01-63-.06, Rule 0780-01-63-.07 or Rule 0780-01-63-.10 or otherwise in compliance with T.C.A. §§ 56-2-208 and 56-2-209 after the adoption of this chapter unless the reinsurance agreement:
(1) Includes a proper insolvency clause, which stipulates that reinsurance is payable directly to liquidator or successor without diminution regardless of the status of the ceding company, pursuant to T.C.A. § 56-2-207;
(2) Includes a provision pursuant to T.C.A. § 56-2-208(b) 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 such 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; and
(3) Includes a proper reinsurance intermediary clause, if applicable, which stipulates that the credit risk for the intermediary is carried by the assuming insurer.
Authority: T.C.A. §§ 56-2-207, 56-2-208, 56-2-209, 56-2-209(e), and 56-2-301.
