Text: HF02468 Text: HF02470 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 507C.32, Code 1997, is amended to read 1 2 as follows: 1 3 507C.32 REINSURER'S LIABILITY. 1 4 Notwithstanding a provision in the reinsurance contract or 1 5 other agreement, the amount recoverable by the liquidator from 1 6 reinsurers shall not be reduced as a result of delinquency 1 7 proceedings. Payment made directly to an insured or other 1 8 creditor shall not diminish the reinsurer's obligation to the 1 9 insurer's estate except whenthe reinsurance contract provided1 10for direct coverage of a named insured and the payment was1 11made in discharge of that obligationeither of the following 1 12 applies: 1 13 1. The contract or other written agreement specifically 1 14 provides for another payee of the reinsurance in the event of 1 15 the insolvency of the ceding insurer. 1 16 2. The assuming insurer, with the consent of the direct 1 17 insured, has assumed the policy obligations of the ceding 1 18 insurer as direct obligations of the assuming insurer to the 1 19 payees under the policies and in substitution for the 1 20 obligations of the ceding insurer to the payees. 1 21 EXPLANATION 1 22 The bill provides that the reinsurer's obligation to the 1 23 insurer's estate is not reduced as a result of delinquency 1 24 proceedings except when the agreement provides for another 1 25 payee of the reinsurance to make payment or when an assuming 1 26 insurer has assumed the policy obligations of the ceding 1 27 insurer. 1 28 LSB 4229HV 77 1 29 mg/cf/24
Text: HF02468 Text: HF02470 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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