2006 Utah Code - 31A-22-1201 — Assumption agreement.

     31A-22-1201.   Assumption agreement.
     There is no credit for reinsurance ceded under Section 31A-17-404 unless, in addition to meeting the other requirements stated under Section 31A-17-404, the reinsurance agreement provides that the reinsurance shall be payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract or contracts reinsured without diminution because of the insolvency of the ceding insurer directly to the ceding insurer or to its domiciliary liquidator or receiver except where:
     (1) the contract specifically provides another payee of such insurance in the event of the insolvency of the ceding insurer; or
     (2) the assuming insurer with the consent of the direct insured or insureds has assumed such policy obligations of the ceding insurer as direct obligations of the assuming insurer to the payees under such policies and in substitution for the obligations of the ceding insurer to such payees.

Enacted by Chapter 242, 1985 General Session