Sec. 38a-411. Reinsurance. (a) A title insurer may obtain reinsurance for all or
any part of its liability under one or more of its title insurance policies or reinsurance
agreements and may also reinsure title insurance policies issued by other title insurers
on risks located in this state or elsewhere. Except as provided in subsections (b) and (c)
of this section, reinsurance on policies issued on properties located in this state shall be
obtained from title insurers licensed to transact title insurance business in this state.
(b) Upon application by a title insurer, the commissioner may permit the insurer to
obtain reinsurance from a title insurer not licensed in this state where capital and surplus
of the unlicensed title insurer meets the requirements for licensed companies under
section 38a-405.
(c) Upon application by a domestic title insurer, the commissioner may permit the
insurer to obtain reinsurance from a property and casualty reinsurer accredited pursuant
to the provisions of section 38a-85, provided such domestic title insurer has executed
an affidavit setting forth facts showing that such insurer was unable after diligent effort
to procure, from another title insurer, a reinsurance treaty that is reasonably consistent
with what is fair and appropriate under commonly accepted commercial practices. Such
title insurer shall include such affidavit and a copy of the proposed reinsurance treaty
with the application filed by such insurer with the commissioner.
(P.A. 90-218, S. 12; P.A. 11-253, S. 2.)
History: P.A. 11-253 amended Subsec. (a) to add exception re Subsecs. (b) and (c) and make a technical change, and
added Subsec. (c) authorizing commissioner to permit domestic title insurer, upon request, to obtain reinsurance from
property casualty reinsurer, effective July 13, 2011.
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