Texas Insurance Code - Not Codified - Article 21.72. General Reinsurance Requirements
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Art. 21.72. GENERAL REINSURANCE REQUIREMENTS.
Article repealed effective April 1, 2007
Sec. 1. (a) An insurance company incorporated under the laws
of this state, another state, or the United States and authorized to
do business in this state may not expose itself to any loss or
hazard on any one risk in an amount that exceeds 10 percent of the
company's surplus as regards policyholders unless the excess is
reinsured by the company in another solvent insurer.
(b) An insurance company incorporated under a jurisdiction
other than that of this state, another state, or the United States
and authorized to do business in this state may not expose itself to
any loss or hazard on any one risk in an amount that exceeds 10
percent of the company's deposit with the statutory officer in the
state through which the company gains admission to the United
States, together with 10 percent of the other surplus to
policyholders of the company's United States branch, unless the
excess is reinsured by the company in another solvent insurer.
Sec. 2. An insurance or reinsurance company authorized to
transact insurance or reinsurance in this state may reinsure the
whole or any part of an individual risk in another solvent insurer.
Sec. 3. This article does not apply to:
(1) life insurance;
(2) health insurance;
(3) annuity contracts;
(4) title insurance;
(5) workers' compensation insurance;
(6) employers' liability insurance coverage; or
(7) any policy or type of coverage as to which the maximum
possible loss to the insurer is not readily ascertainable on
issuance of the policy.
Sec. 4. Any reinsurance required or permitted by this article
must comply with Article 5.75-1 of this code.
Added by Acts 1995, 74th Leg., ch. 614, Sec. 14, eff. Sept. 1, 1995.
Sec. 1(a) amended by Acts 1997, 75th Leg., ch. 441, Sec. 1, eff.
Sept. 1, 1997.
Article: 21.53X 21.54 21.58A 21.58B 21.58C 21.61 21.70 21.72 21.77 21.79 21.79E 21.79H 21.80 21.81 25.01
Last modified: August 11, 2007
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