1.  A domestic property or casualty insurer with less than $3,000,000 in surplus as regards policyholders shall not, without the written approval of the Commissioner, assume reinsurance on any risk that it otherwise is permitted to assume, except if the reinsurance is required by law or regulation.

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2.  The provisions of this section are applicable to a contract of reinsurance executed or renewed on or after October 1, 1991.

3.  The provisions of this section do not invalidate any reinsurance contract between the parties to the contract.