40-3634. Payment of reinsurance upon insolvency of ceding insurer.
40-3634
40-3634. Payment of reinsurance upon insolvency ofceding insurer.Except as provided in K.S.A. 40-3602 and amendments thereto,in the event of the insolvency of the ceding insurer, the reinsurance shallbe payable under a contract reinsured by the assuming insurer on the basis ofthe liability of the ceding company under the contract or contracts reinsured,as approved by the liquidation court, without diminution because of theinsolvency of the ceding insurer.Such payments shall be made directly to the ceding insurer or to itsdomiciliary liquidator except: (a) Where the reinsurance contract or policyreinsured specifically provides another payee of such reinsurance in the eventof the insolvency of the ceding insurer; or (b) where the assuming insurer,with the consent of the direct insured, has assumed such policy obligations ofthe ceding insurer as direct obligations of the assuming insurer to the payeesunder such policies and in substitution for the obligations of the cedinginsurer to such payees.
History: L. 1991, ch. 125, § 30;L. 1999, ch. 66, § 2; July 1.