| 12.__Reinsurance of obligations; election by association.__At |
| any time within one year after the date on which the association |
| becomes responsible for the obligations of a member insurer, the |
| association may elect to succeed to the rights and obligations of |
| the member insurer that accrue on or after the coverage date and |
| that relate to contracts covered in whole or in part by the |
| association under any one or more indemnity reinsurance |
| agreements entered into by the member insurer as a ceding insurer |
| and selected by the association.__However, the association may |
| not exercise an election with respect to a reinsurance agreement |
| if the receiver, rehabilitator or liquidator of the member |
| insurer has previously and expressly disaffirmed the reinsurance |
| agreement.__The election is effected by a notice to the receiver, |
| rehabilitator or liquidator and to the affected reinsurers.__If |
| the association makes an election, the following requirements |
| apply with respect to the agreements selected by the association. |