California Insurance Code

§ 12121

INS § 12121 Effective Jan 1, 2013Div. 2 · Part 4 · Ch. 1 · Art. 5

Statute text

(a)For financial guaranty insurance that takes effect on or after January 1, 1991, an insurer authorized to transact financial guaranty insurance shall receive credit for reinsurance as an asset or as a reduction from liabilities only if the reinsurance is placed with a reinsurer as provided in subdivision (b), and if the reinsurance agreement may be terminated or amended only if one or more of the following applies:

(1)At the option of the reinsurer or the ceding insurer if the reinsurance agreement provides that the liability of the reinsurer with respect to policies in effect at the date of termination shall continue until the expiration or cancellation of each such policy.

(2)With the consent of the ceding company, if the reinsurance agreement provides for a cutoff of the reinsurance in force as of the date of termination.

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Legislative history

Amended by Stats. 2012, Ch. 277, Sec. 13. (SB 1216) Effective January 1, 2013.