512B.14 Reinsurance. 1. 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 powerto make such reinsurance agreements and authorized to do business in this state, or if notso authorized, one which is approved by the commissioner; but a society shall not reinsuresubstantially all of its insurance in force without the written permission of the commissioner.It may take credit for the reserves on ceded risks to the extent reinsured, but credit shallnot be allowed as an admitted asset or as a deduction from liability, to a ceding society forreinsurance made, ceded, renewed, or otherwise becoming effective after January 1, 1991,unless the reinsurance is payable by the assuming insurer on the basis of the liability of theceding society under the contract or contracts reinsured without diminution because of theinsolvency of the ceding society. 2. Notwithstanding the limitation in subsection 1, a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under section512B.15. ceding society. 2. Notwithstanding the limitation in subsection 1, a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under section512B.15. 90 Acts, ch 1148, §14 Sat Dec 23 00:43:16 2023 Iowa Code 2024, Section 512B.14 (16, 0)
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