Section 7: Compulsory reinsurance with the Corporation by registered insurers.

(1) Subject to subsection (2) of this section, a registered insurer shall, in respect of every insurance policy issued or renewed by it on or after 1 January, 1978 reinsure with the Corporation an amount equal to twenty per cent of the sum insured in the policy upon and subject to the provisions of the Second Schedule to this Act; anti the registered insurer shall forthwith, pay over to the Corporation an amount equal to twenty per cent of the premium received by the registered insurer on the issue or, as the case may be, renewal of the policy.
(2) The Corporation shall, in respect of any reinsurance ceded to it pursuant to subsection (1) of this section by a registered insurer, pay to such registered insurer commission at such rate as the Corporation may determine after taking into account any applicable commercial consideration; but no profit commission shall be payable on such cessions.
(3) In respect of reinsurance business above the legal cession, that is, the percentage of cession specified in subsection (1) of this section, the Corporation shall have the right of first refusal of any reinsurance business from Nigeria, before such business is placed in the international reinsurance market.
(4) Where the Corporation exercises the right of first refusal conferred upon the Corporation under subsection (3) of this section, the Corporation shall issue a certificate to this effect to the insurer before such reinsurance is placed in the international market.