NAC681A.190. Reduction of liability or establishment of asset in financial statement: Requirements of letter of intent, reinsurance agreement or amendment.

     1. No reinsurance agreement or amendment thereto may be used to reduce any liability or to establish any asset in any financial statement filed with the Division, unless the agreement, amendment or a binding letter of intent has been duly executed by both parties no later than the last day covered by the financial statement.

     2. A letter of intent, a reinsurance agreement or an amendment thereto must be executed within a reasonable time, not to exceed 90 days after the date of execution of the letter of intent for credit to be granted for the reinsurance ceded.

     3. A reinsurance agreement must provide that:

     (a) The agreement constitutes the entire agreement between the parties with respect to the business being reinsured thereunder and that there are no understandings between the parties other than as expressed in the agreement; and

     (b) Any change or modification to the agreement is void unless it is made by written amendment to the agreement and signed by both parties.

     (Added to NAC by Comm’r of Insurance, eff. 5-13-96; A by R027-02, 5-31-2002; R169-03, 2-12-2004)