§ 58-30-170. Reinsurer's liability.
§58‑30‑170. Reinsurer's liability.
The amount recoverable by theliquidator from reinsurers shall not be reduced as a result of the delinquencyproceedings, regardless of any provision in the reinsurance contract or otheragreement. Payment made directly to an insured or other creditor does notdiminish the reinsurer's obligation to the insurer's estate except;
(1) Where the contractspecifically provides for another payee of the reinsurance in the event of theinsolvency of the ceding insurer or
(2) Where the assuminginsurer, with the consent of the direct insured or insureds, has assumed thepolicy obligations of the ceding insurer as direct obligations of the assuminginsurer to the payees under policies and in substitution of the obligations ofthe ceding insurer to the payees. (1989, c. 452, s. 1.)