(a) Stipulated premium companies organized under this chapter may enter into a total or partial direct reinsurance agreement if the company assuming the policies under the agreement is authorized to transact the kinds of insurance provided by those policies.
(b) Before a stipulated premium company may enter into a total direct reinsurance agreement:
(1) the company must submit the agreement to the department; and
(2) the department must approve the agreement as fully protecting the interests of all the holders of policies being assumed.

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(c) A partial direct reinsurance agreement shall be filed with the department before the effective date of the agreement.