(1) A domestic society may, by a reinsurance agreement, cede any individual risk or risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in this state, or if not so authorized, to an insurer which is approved by the office. However, no domestic society may reinsure 75 percent or more of its insurance in force without the written permission of the office. The domestic society may take credit for the reserves on such ceded risks to the extent reinsured, but no credit shall be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective after the effective date of this act, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract or contracts reinsured without diminution because of the insolvency of the ceding society.
(2) Notwithstanding the limitation in subsection (1), a society may reinsure the risks of another society in a consolidation or merger approved by the office under s. 632.615.
History.—ss. 4, 6, ch. 86-140; s. 6, ch. 91-110; s. 4, ch. 91-429; s. 1379, ch. 2003-261.
Structure Florida Statutes
Chapter 632 - Fraternal Benefit Societies
632.601 - “Fraternal Benefit Society” Defined.
632.602 - “Lodge System” Defined.
632.603 - “Representative Form of Government” Defined.
632.605 - Purposes and Powers.
632.606 - Qualifications for Membership.
632.607 - Location of Office; Meetings; Communications to Members; Grievance Procedures.
632.608 - No Personal Liability.
632.615 - Consolidations and Mergers.
632.616 - Conversion of Fraternal Benefit Society Into Mutual Life Insurance Company.
632.619 - Benefits Not Attachable.
632.621 - The Benefit Contract.
632.622 - Nonforfeiture Benefits, Cash Surrender Values, Certificate Loans, and Other Options.
632.631 - Examination of Societies; No Adverse Publications.
632.632 - Foreign or Alien Society; Admission.
632.634 - Licensing and Appointment of Agents.
632.635 - Unfair and Deceptive Acts and Practices.
632.636 - Violations; Penalties.