Current through Register Vol. 55, No. 1, January 4, 2025
Section 163.16 - Provisions in reinsurance agreements entered into inconjunction with letters of creditWhen a reinsurance agreement is entered into in conjunction with a letter of credit, either the reinsurance agreement or an ancillary agreement thereto shall contain provisions that:
(1) Require the reinsurer to provide letters of credit to the ceding insurer.(2) Specify what recoverables and reserves are covered by the letter of credit.(3) Specify that notice of nonrenewal of the letter of credit is a reason that the ceding insurer may draw down the full amount of the letter of credit.