1. If any insolvent and dissolved company shall be reinsured under the provisions of law, the securities on deposit with the director at the date of the dissolution of the said company shall remain on deposit with him, as a fund for the benefit of the policyholders of the reinsured company, so long as their said policies remain in force; and the same shall not, by virtue of the reinsurance, be transferred to or become a part of the deposit of the reinsuring company, except that said reinsuring company shall have the same right as to the withdrawal or substitution, and as to receiving the interest thereon, as the depositing company had; and said reinsuring company shall be subject to the same liabilities, penalties and obligations as the company depositing would have been with respect to policy claims against it.

2. In case the reinsuring company becomes insolvent, the director of the department of commerce and insurance shall dispose of the deposits as provided in case of insolvent companies, paying first, out of the net proceeds thereof, the policy claims against the reinsured company, and the remainder, if any, into the general assets of the reinsuring company.