Connecticut Insurance Commissioner Susan Cogswell has given a reinsurer permission to buy an inactive life insurance company domiciled in her state.

Cogswell has issued an order approving efforts by a unit of XL Capital Ltd., Hamilton, Bermuda, to acquire Servus Life Insurance Company from a unit of Hartford Financial Services Group Inc., Hartford, for $3 million.

Servus is the former Royal Life Insurance Company of America. Hartford acquired it from Royal Maccabees Life Insurance Company in 1997, according to a Servus variable annuity prospectus.

Servus is licensed to write business in 49 states and the District of Columbia. It is not licensed in New York and has only a restricted license in North Carolina, Cogswell writes in her order.

Servus has not engaged in any new insurance activity since December 2004, and Reassure America Life Insurance Company, a unit of Swiss Reinsurance Company, Zurich, reinsures all of its in-force business, Cogswell says.

XL Capital plans to use Servus to reinsure term life insurance through coinsurance arrangements or yearly renewable term arrangements.

“Most business is expected to be on a quota share basis and the remainder on an excess retention basis,” Cogswell writes in her order.