Sec. 31.05.07.08. Requirements of Written Agreements

A. Execution by Both Parties. An insurer may not use a reinsurance agreement or an amendment to a reinsurance agreement to reduce any liability or to establish any asset in a financial statement filed with the Commissioner, unless the agreement, amendment, or a binding letter of intent has been duly executed by both parties not later than the "as of date" of the financial statement.

B. Letter of Intent-----Time of Execution. In the case of a letter of intent, a reinsurance agreement or an amendment to a reinsurance agreement shall be executed within a reasonable period of time, not exceeding 90 days from the execution date of the letter of intent, in order for credit to be granted for the reinsurance ceded.

C. Contents of Reinsurance Agreement. A reinsurance agreement shall provide that:

(1) The agreement constitutes the entire agreement between the parties with respect to the business being reinsured under the agreement;

(2) There are no understandings between the parties other than as expressed in the agreement; and

(3) Any change to the agreement is void unless made by amendment to the agreement and signed by both parties.