Section 500.1127. Reinsurance contract

Credit will not be granted to a ceding insurer for reinsurance effected with assuming insurers meeting the requirements of section 1103 or 1105 of Act No. 218 of the Public Acts of 1956, as amended, being § 500.1103 or § 500.1105 of the Michigan Compiled Laws, after the effective date  of these rules, unless the reinsurance agreement includes both of the following:

(a)  ) Contains an insolvency clause acceptable to the commissioner.

(b)    Includes a provision whereby the assuming insurer, if an unauthorized assuming insurer, has agreed to submit to the jurisdiction of an alternative dispute resolution panel or court of competent jurisdiction within the United States, has agreed to comply with all requirements   necessary  to  give  the court or panel jurisdiction, has designated an agent  upon

whom  service  of process may be served, and has agreed to abide by the final decision  of  the court or panel or any appellate court on appeal.

History: 1996 AC.