Section 379.835

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 379

Effective - 28 Aug 1986   

  379.835.  Joint reinsurance association. — 1.  A "Joint Reinsurance Association" (hereinafter referred to as "the association" ) shall be created consisting of all insurers.  The association shall assume from the facility one hundred percent reinsurance on behalf of insurers and shall distribute the liability in accordance with section 379.825.

  2.  Each insurer shall participate in the writings, expenses, profits and losses of the association in the following manner:

  (1)  For habitational risks, the same proportion as its habitational premiums written bear to the aggregate habitational premiums written by all insurers in the program;

  (2)  For commercial risks, the same proportion as its commercial premiums written bear to the aggregate commercial premiums written by all insurers in the program.

  3.  Such association shall adopt a plan of operation and rules of procedure which, prior to being placed in effect, shall be filed with and approved by the director.  Any amendments to the plan of operation or rules of procedure so adopted shall also be filed with and approved by the director prior to being placed into effect.

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(L. 1969 H.B. 772 § 379.131, A.L. 1986 S.B. 701)