Insurance Act, 1936

Obligation to re-insure with the Company.

89.—(1) Every assurance company or syndicate which effects assurance business (excluding life assurance business and industrial assurance business, but including the renewal of any other assurance business, the original contract for which was entered into before the commencement of this Part of this Act) in Saorstát Eireann shall enter into an agreement with the Company whereby such assurance company or syndicate (as the case may be) agrees that, if and so far as it reinsures its assurance business (excluding and including as aforesaid), it will reinsure with the Company but subject to the qualification that the Company may, in the case of any particular risk, refuse to accept the reinsurance thereof unless such assurance company or syndicate (as the case may be) retains such portion of such risk as shall be satisfactory to the Company.

(2) Every agreement entered into by an assurance company or a syndicate with the Company in pursuance of the foregoing sub-section of this section shall provide that—

(a) whenever the amount of any risk undertaken by such assurance company or syndicate exceeds the amount which such assurance company or syndicate is required by such agreement to retain, the Company shall thereupon and without more become and be liable for so much (whether the whole or a portion) of the balance of such risk as the Company is bound by such agreement to accept, and

(b) the Company may, within three days after receiving from an assurance company or a syndicate advice of the amount of any particular risk reinsured (in whole or in part) by such assurance company or syndicate with the Company, give notice in writing to such assurance company or syndicate that the Company desires to be relieved of the whole or of a part (as the case may be) of the re-insurance of such risk, and whenever any such notice is so given, the Company shall, at the expiration of ten days from the receipt of such notice by such assurance company or syndicate, be relieved from liability for (as shall be specified in such notice) the whole or the said part of the re-insurance of such risk.

(3) When an assurance company or a syndicate which is required by this section to enter into an agreement with the Company has duly entered into such agreement, nothing in this section shall operate to restrict or control the re-insurance by such assurance company or syndicate of its assurance business save in so far and in such respects as such re-insurance is restricted or controlled by such agreement.

(4) Nothing in this section shall operate to restrict or control the re-insurance by an assurance company or a syndicate of any part of its assurance business in respect of which such assurance company or syndicate is not required by this section to enter into an agreement with the Company.