31.05.08.23

.23 Reinsurance Contract.

Credit for reinsurance may not be allowed by the Commissioner as an admitted asset or deduction from liability to any ceding insurer for a reinsurance contract entered into with a reinsurer under this chapter after the adoption of this regulation unless the reinsurance contract includes:

A. An insolvency clause, in accordance with Insurance Article, §5-905(a), Annotated Code of Maryland; and

B. A provision under which the reinsurer, if an unauthorized reinsurer, has:

(1) Submitted to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States;

(2) Agreed to comply with all requirements necessary to give the court or panel jurisdiction;

(3) Designated an agent to receive service of process; and

(4) Agreed to abide by the final decision of the court or panel.

C. Includes a proper reinsurance intermediary clause, if applicable, which stipulates that the credit risk for the intermediary is carried by the assuming insurer.