Subject to §B of this regulation, an insurer shall reduce to zero by December 31, 1998, any reserve credits or assets established with respect to reinsurance agreements entered into before the effective date of this chapter that, under this chapter, would not be entitled to recognition of the reserve credits or assets. An insurer is entitled to the grace period for a reinsurance agreement under §A of this regulation only if the reinsurance agreement was in compliance with the law and regulations in existence immediately preceding the effective date of this chapter.