Oklahoma § 36-2713.1 - Reinsurance

§ 36-2713.1. Reinsurance

A. A domestic society may, by a reinsurance agreement, cede any

individual risk or risks in whole or in part to an insurer, other

than another fraternal benefit society, having the power to make

such reinsurance and authorized to do business in this state, or if

not so authorized, one which is approved by the Insurance

Commissioner; provided, no such society may reinsure substantially

all of its insurance in force without the written permission of the

Commissioner. It may take credit for the reserves on such ceded

risks to the extent reinsured, but no credit shall be allowed as an

admitted asset or as a deduction from liability, to a ceding society

for reinsurance made, ceded, renewed, or otherwise becoming

effective after the effective date of this act, unless the

Oklahoma Statutes - Title 36. Insurance

reinsurance is payable by the assuming insured on the basis of the

liability of the ceding society under the contract or contracts

reinsured without diminution because of the insolvency of the ceding

society.

B. Notwithstanding the limitation in subsection A of this

section, a society may reinsure the risks of another society in a

consolidation or merger approved by the Commissioner under Section

14 of this act.

Added by Laws 1992, c. 76, § 13, eff. Jan. 1, 1993.