A. A domestic stock insurer or a domestic limited stock insurer may accept reinsurance for the same kinds of insurance and within the same limits as it is authorized to transact directly, unless the reinsurance is prohibited by its articles of incorporation. If a reinsurance contract constitutes all or substantially all of the insurance business, the reinsuring agreement shall not become effective unless filed with and approved in writing by the director. If not acted upon within thirty days, the agreement shall be deemed approved unless the director notifies the parties to the agreement that a thirty day extension to the time period has been imposed. Any person may request a hearing regarding the decision of the director pursuant to Title 41, Chapter 6, Article 10.

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B. A domestic stock insurer or limited stock insurer may reinsure all or substantially all its business in force, or substantially all of a major class thereof, with another insurer by an agreement of reinsurance, but no agreement shall become effective unless filed with and approved in writing by the director.

C. The director shall approve the agreement within a reasonable time after filing unless the director finds that it is inequitable to the stockholders of the domestic insurer or would substantially reduce the protection or service to its policyholders. If the director does not approve the agreement the director shall notify the insurer in writing specifying the reasons for the disapproval of the agreement.

D. For the purposes of this section, "reinsurance" means a contract by which an insurer procures a third person to insure the insurer against loss or liability by reason of original insurance, or a contract that one insurer makes with another insurer to protect the latter from a risk already assumed.