58-29B-62. Fraudulent transfers between insurer and reinsurer--Grounds for avoidance by receiver.
106 words·~1 min read·
/sd/title-58/chapter-58-29/58-29b-62·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Any transaction of the insurer with a reinsurer shall be deemed fraudulent and may be avoided by the receiver under § 58-29B-61 if:
(1)The transaction consists of the termination, adjustment, or settlement of a reinsurance contract in which the reinsurer is released from any part of its duty to pay the originally specified share of losses that had occurred prior to the time of the transaction, unless the reinsurer gives a present fair equivalent value for the release; and
(2)Any part of the transaction took place within one year prior to the date of filing of the petition through which the receivership was commenced.