(1) Every assurance company or syndicate which effects assurance business (excluding life assurance business and industrial assurance business, but including the renewal of any other assurance business, the original contract for which was entered into before the commencement of this Part of this Act) in Saorstát Eireann shall enter into an agreement with the Company whereby such assurance company or syndicate (as the case may be) agrees that, if and so far as it reinsures its assurance business (excluding and including as aforesaid), it will reinsure with the Company but subject to the qualification that the Company may, in the case of any particular risk, refuse to accept the reinsurance thereof unless such assurance company or syndicate (as the case may be) retains such portion of such risk as shall be satisfactory to the Company.
(2) Every agreement entered into by an assurance company or a syndicate with the Company in pursuance of the foregoing sub-section of this section sh