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Reinsurance Security Agreement Template for Ireland

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Key Requirements PROMPT example:

Reinsurance Security Agreement

"I need a Reinsurance Security Agreement governed by Irish law for our Irish subsidiary acting as cedent, with collateral requirements set at 120% of technical provisions and quarterly valuation dates starting March 2025, including specific provisions for letters of credit as eligible collateral."

Document background
A Reinsurance Security Agreement is a crucial document used in the reinsurance industry to provide financial security and collateral arrangements between reinsurers and cedent companies. Under Irish law, these agreements are particularly important for compliance with regulatory requirements, including Solvency II provisions and Central Bank of Ireland regulations. The agreement is typically implemented when a cedent requires additional security for reinsurance obligations, especially in cases involving international reinsurers or significant risk exposure. It includes detailed provisions for collateral calculations, custody arrangements, enforcement rights, and regulatory compliance. The document must align with Irish financial services regulations while accommodating international reinsurance practices and standards.
Suggested Sections

1. Parties: Identifies and defines the contracting parties - typically the reinsurer providing security and the cedent receiving security

2. Background: Contextualizes the agreement, references the underlying reinsurance arrangement, and explains the purpose of the security agreement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation rules

4. Security Interest Creation: Establishes the creation and nature of the security interest, including the assets being secured

5. Collateral Requirements: Specifies the type, amount, and quality of collateral required, including calculation methods and maintenance requirements

6. Custody Arrangements: Details the arrangements for holding and managing the collateral, including custodian responsibilities

7. Top-Up and Release Provisions: Sets out conditions and procedures for increasing or releasing collateral based on value fluctuations or obligation changes

8. Rights and Obligations: Details the ongoing rights and obligations of all parties regarding the security arrangement

9. Events of Default: Defines circumstances constituting default and consequences thereof

10. Enforcement: Specifies the procedures and rights for enforcing security upon default

11. Representations and Warranties: Contains standard and specific representations and warranties from each party

12. Termination: Sets out circumstances and procedures for terminating the agreement

13. Governing Law and Jurisdiction: Specifies Irish law as governing law and establishes jurisdiction for disputes

Optional Sections

1. Multi-Currency Provisions: Required when collateral may be provided in multiple currencies, specifying exchange rate mechanisms and currency conversion procedures

2. Trust Arrangements: Needed when the security arrangement involves a trust structure, detailing the trust mechanism and trustee obligations

3. Letters of Credit: Required when letters of credit are accepted as eligible collateral, specifying requirements and procedures

4. Investment of Collateral: Needed when collateral assets may be invested, specifying permitted investments and investment procedures

5. Tax Provisions: Required for cross-border arrangements or when specific tax implications need addressing

6. Regulatory Compliance: Needed when specific regulatory requirements must be addressed, such as Solvency II compliance

7. Third Party Rights: Required when rights are granted to non-parties, such as regulators or beneficiaries

Suggested Schedules

1. Schedule 1 - Underlying Reinsurance Contracts: Lists and describes the reinsurance contracts covered by the security arrangement

2. Schedule 2 - Collateral Specifications: Detailed requirements for eligible collateral, including types, ratings, and valuation methods

3. Schedule 3 - Calculation of Required Collateral Amount: Formula and methodology for calculating required collateral amounts

4. Schedule 4 - Forms of Notices: Standard forms for various notices required under the agreement

5. Schedule 5 - Custodian Agreement Terms: Key terms and requirements for any custody arrangement

6. Appendix A - Contact Details: Contact information for all relevant parties and authorized representatives

7. Appendix B - Reporting Requirements: Templates and specifications for required reporting under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































Clauses


































Relevant Industries

Insurance

Reinsurance

Banking

Financial Services

Asset Management

Professional Services

Legal Services

Relevant Teams

Legal

Compliance

Risk Management

Treasury

Operations

Finance

Reinsurance

Regulatory Affairs

Portfolio Management

Insurance Operations

Collateral Management

Relevant Roles

Chief Risk Officer

Head of Reinsurance

Legal Counsel

Compliance Officer

Treasury Manager

Collateral Manager

Chief Financial Officer

Reinsurance Manager

Risk Manager

Operations Director

Security Trustee Officer

Regulatory Affairs Manager

Portfolio Manager

Insurance Operations Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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