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Reinsurance Trust Agreement Template for Germany

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Key Requirements PROMPT example:

Reinsurance Trust Agreement

"I need a Reinsurance Trust Agreement under German law for our Munich-based reinsurance company acting as grantor, with Deutsche Bank as trustee and multiple EU-based insurance companies as beneficiaries, to be implemented by March 2025."

Document background
The Reinsurance Trust Agreement is a critical document used when a reinsurance company needs to provide collateral to a primary insurer in Germany to secure its reinsurance obligations. This arrangement is particularly important in the context of German regulatory requirements and BaFin supervision. The document is typically implemented when there's a need to demonstrate financial security in reinsurance relationships, manage regulatory capital requirements, or satisfy specific collateral requirements under German insurance laws. The agreement covers essential aspects such as asset eligibility, investment parameters, withdrawal conditions, and reporting requirements, all while ensuring compliance with German banking and insurance regulations. It's especially relevant for cross-border reinsurance arrangements where German regulatory oversight applies and when reinsurers need to demonstrate their financial strength and commitment to their obligations.
Suggested Sections

1. Parties: Identification of the Grantor (Reinsurer), the Beneficiary (Ceding Insurer), and the Trustee

2. Background: Context of the reinsurance relationship and purpose of the trust arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Establishment of Trust: Creation of the trust account and initial deposit requirements

5. Deposit of Assets: Procedures and requirements for depositing assets into the trust

6. Asset Management: Requirements for asset quality, permitted investments, and investment guidelines

7. Trustee Powers and Duties: Detailed responsibilities and authorities of the trustee

8. Withdrawal of Assets: Procedures and conditions for withdrawal of assets by the beneficiary

9. Representations and Warranties: Statements of fact and guarantees by all parties

10. Trustee Compensation: Fees and expenses of the trustee and payment terms

11. Reporting Requirements: Regular reporting obligations of all parties

12. Regulatory Compliance: Compliance with German insurance and banking regulations

13. Termination: Conditions and procedures for terminating the trust agreement

14. Governing Law and Jurisdiction: Application of German law and jurisdiction for disputes

Optional Sections

1. Security Interest Provisions: Required when assets need to be pledged as security

2. Foreign Currency Provisions: Needed when trust assets include multiple currencies

3. Sub-Custodian Arrangements: Required when third-party custodians are involved

4. Tax Provisions: Detailed tax handling procedures when complex tax situations apply

5. Insurance Requirements: Additional insurance requirements for specific asset types

6. Anti-Money Laundering Provisions: Enhanced AML procedures for high-risk situations

7. Electronic Trading Provisions: Required when electronic trading of trust assets is permitted

8. Force Majeure: Specific provisions for extraordinary circumstances affecting trust operations

Suggested Schedules

1. Schedule A - Asset Eligibility Criteria: Detailed criteria for acceptable trust assets

2. Schedule B - Initial Assets: List of assets initially deposited into the trust

3. Schedule C - Investment Guidelines: Detailed investment parameters and restrictions

4. Schedule D - Fee Schedule: Detailed breakdown of trustee fees and expenses

5. Schedule E - Authorized Representatives: List of persons authorized to act on behalf of each party

6. Schedule F - Forms: Standard forms for withdrawals, deposits, and other operations

7. Appendix 1 - Regulatory Requirements: Specific BaFin and other regulatory requirements

8. Appendix 2 - Reporting Templates: Standard formats for required reports

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Trust Services

Asset Management

Risk Management

Regulatory Compliance

Relevant Teams

Legal

Compliance

Risk Management

Treasury

Operations

Reinsurance

Finance

Regulatory Affairs

Investment

Trust Administration

Account Management

Relevant Roles

Chief Financial Officer

Head of Reinsurance

Legal Counsel

Compliance Officer

Risk Manager

Treasury Manager

Trust Administrator

Reinsurance Manager

Investment Manager

Regulatory Affairs Director

Operations Director

Account Manager - Reinsurance

Chief Risk Officer

Head of Legal

Financial Controller

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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