Section 11072 Of Article 5. Contract From California Insurance Code >> Division 2. >> Part 2. >> Chapter 10. >> Article 5.
11072
. A domestic society may, by a reinsurance agreement, cede any
individual risk or risks in whole or in part to an insurer 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 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 chapter, 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.