Commercial Reinsurance/Private Market Instruments. (A) The Company may use commercial reinsurance or private market instruments to transfer or hedge its liability for ultimate net losses remaining after all cessions under this Agreement. The Company shall not use private market instruments to transfer or hedge any liability for ultimate net losses: (i) For eligible livestock price insurance contracts contained in the Commercial Fund; or (ii) Cede to FCIC in either the Private Market or Commercial Fund. (B) Commercial reinsurance required to meet the Company’s obligations under this Agreement, unless otherwise specified by FCIC in writing, must meet the definition of, and the standard applicable to: (i) Reinsurance in the National Association of Insurance Commissioners (NAIC) Credit for Reinsurance Model Law, or a NAIC model successor law; (ii) Standards for reinsurance under the NAIC Accounting Practices and Procedures Manual including any revisions or updates; and (iii) Any other relevant standards developed by the NAIC for credit for reinsurance.
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Samples: Livestock Price Reinsurance Agreement, Livestock Price Reinsurance Agreement, Livestock Price Reinsurance Agreement
Commercial Reinsurance/Private Market Instruments.
(A) The Company may use commercial reinsurance or private market instruments to transfer or hedge its liability for ultimate net losses remaining after all cessions under this Agreement. The Company shall not use private market instruments to transfer or hedge any liability for ultimate net losses:losses:
(i) For eligible livestock price insurance contracts contained in the Commercial Fund; oror
(ii) Cede to FCIC in either the Private Market or Commercial Fund.Fund.
(B) Commercial reinsurance required to meet the Company’s obligations under this Agreement, unless otherwise specified by FCIC in writing, must meet the definition of, and the standard applicable to:to:
(i) Reinsurance in the National Association of Insurance Commissioners (NAIC) Credit for Reinsurance Model Law, or a NAIC model successor law;law;
(ii) Standards for reinsurance under the NAIC Accounting Practices and Procedures Manual including any revisions or updates; andand
(iii) Any other relevant standards developed by the NAIC for credit for reinsurance.
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