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§ 8-441. Reinsurance agreements

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 8. Entities that Act as Insurers
Subtitle 4. Fraternal Benefit Societies (Refs & Annos)
Part IV. Other Powers and Duties
MD Code, Insurance, § 8-441
§ 8-441. Reinsurance agreements
Currentness
In general
(a) Subject to subsection (b) of this section, a domestic society may cede wholly or partly any individual risk by reinsurance agreement to an insurer that:
(1) is not a fraternal benefit society;
(2) has the power to make reinsurance; and
(3) is authorized to do insurance business in the State or is approved by the Commissioner.
Written permission of Commissioner
(b) A domestic society may not reinsure substantially all of its insurance in force without the written permission of the Commissioner.
Credit for reserves on risks ceded
(c)(1) Except as provided in paragraph (2) of this subsection, a ceding domestic society may take credit for the reserves on risks ceded under this section to the extent reinsured.
(2) A ceding domestic society may not be allowed credit, as an admitted asset or as a deduction from liability, for reinsurance made, ceded, renewed, or that otherwise became effective after December 31, 1963, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contracts reinsured without diminution because of the insolvency of the ceding society.
Consolidation or merger of societies
(d) Notwithstanding the limitations in this section, a society may reinsure the risks of another society in a consolidation or merger approved by the Commissioner under § 8-438 of this subtitle.

Credits

Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 183, § 1, eff. Jan. 1, 1998.
Formerly Art. 48A, § 335.
MD Code, Insurance, § 8-441, MD INSURANCE § 8-441
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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