South Dakota Codified Laws 58-29B-94.1. Association election to succeed to rights and obligations of insolvent insurer under reinsurance contract–Reinsurer’s liability to pay claims
Notwithstanding § 58-29B-94, if a life and health insurance guaranty association has made the election to succeed to the rights and obligations of the insolvent insurer under the contract of reinsurance, the reinsurer’s liability to pay covered reinsured claims continues under the contract of reinsurance, subject to the payment to the reinsurer of the reinsurance premiums for such coverage. Payment for such reinsured claims may only be made by the reinsurer pursuant to the direction of the guaranty association or its designated successor. Any payment made at the direction of the guaranty association or its designated successor by the reinsurer discharges the reinsurer of any further liability to any other party for the claim payment.
Terms Used In South Dakota Codified Laws 58-29B-94.1
- Contract: A legal written agreement that becomes binding when signed.
- insolvent: means that it is unable to pay its obligations when they are due, or when its admitted assets do not exceed its liabilities plus the greater of any capital and surplus required by law for its organization or the total par or stated value of its authorized and issued capital stock. See South Dakota Codified Laws 58-29B-3
Source: SL 2005, ch 274, § 2.