(a) 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, one which is approved by the commissioner, but no such society may reinsure substantially all of its insurance in force without the written permission of the commissioner. It may take credit for the reserves on the 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 August 1, 1985, 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.
(b) Notwithstanding the limitation in paragraph (a), a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under section 64B.14, or under such other circumstances as approved by the commissioner including reinsurance of an affiliated insurance company.
1985 c 49 s 13; 2006 c 204 s 9
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Chapter 64B — Fraternal Benefit Societies
Section 64B.01 — Fraternal Benefit Societies.
Section 64B.02 — Lodge System.
Section 64B.03 — Representative Form Of Government.
Section 64B.05 — Purposes And Powers.
Section 64B.06 — Qualifications For Membership.
Section 64B.07 — Location Of Office, Meetings, Communications To Members, Grievance Procedures.
Section 64B.08 — Personal Liability; Indemnification; Insurance; Advances.
Section 64B.10 — Organization.
Section 64B.11 — Amendments To Laws.
Section 64B.12 — Institutions.
Section 64B.14 — Consolidations And Mergers.
Section 64B.15 — Conversion Of Fraternal Benefit Society Into Mutual Life Insurance Company.
Section 64B.17 — Beneficiaries.
Section 64B.18 — Benefits Not Attachable.
Section 64B.19 — Benefit Contract.
Section 64B.27 — Annual License.
Section 64B.28 — Examination Of Societies; No Adverse Publications.
Section 64B.29 — Foreign Or Alien Society; Admission.
Section 64B.30 — Domestic Associations; Examination; Rehabilitation; Dissolution.
Section 64B.31 — Suspension, Revocation, Or Refusal Of License Of Foreign Or Alien Society.
Section 64B.33 — Licensing Of Agents.
Section 64B.34 — Unfair Methods Of Competition And Unfair And Deceptive Acts And Practices.
Section 64B.35 — Service Of Process.
Section 64B.38 — Certain Organizations Exempt.
Section 64B.39 — Beneficiary Associations.
Section 64B.41 — Risk-based Capital Reports.
Section 64B.42 — Fraternal Action Level Event.
Section 64B.43 — Fraternal Authorized Control Level Event; Domestic Societies.
Section 64B.45 — Prohibition On Announcements.