2007 Minnesota Statutes

64B.13 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 commissioner, but 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 the 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 August 1, 1985, unless the reinsurance is payable by the
assuming insurer 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 paragraph (a), a society may reinsure the risks of
another society in a consolidation or merger approved by the commissioner under section 64B.14,
or under such other circumstances as approved by the commissioner including reinsurance of an
affiliated insurance company .
History: 1985 c 49 s 13; 2006 c 204 s 9