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A.  Whenever an insurer agrees to assume and carry out directly with the policyholder any of the policy obligations of the ceding insurer under a reinsurance agreement, any claim existing or action or proceeding pending arising out of such policy by or against the ceding insurer with respect to such obligations may be prosecuted to judgment as if such reinsurance agreement had not been made, or the assuming insurer may be substituted in place of the ceding insurer.

B.  Where two or more assuming insurers are involved in the same claim and a majority in interest elect to interpose defense to such claim, the expense shall be apportioned in accordance with the terms of the reinsurance agreement as though such expense had been incurred by the ceding insurer.

Acts 1958, No. 125; Acts 1991, No. 996, §1, eff. Jan. 1, 1992; Redesignated from La. Rev. Stat. 22:943 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.

NOTE:  Former La. Rev. Stat. 22:657 redesignated as La. Rev. Stat. 22:1821 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.