Texas Insurance Code - Section 402.004. Report Made On Nonconsolidated Basis
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§ 402.004. REPORT MADE ON NONCONSOLIDATED BASIS. (a) An
insurer or health maintenance organization shall report each
material acquisition or disposition and each material nonrenewal,
cancellation, or revision of a ceded reinsurance agreement on a
nonconsolidated basis unless the insurer or health maintenance
organization:
(1) is part of a consolidated group of insurers or
health maintenance organizations that uses a pooling arrangement or
a 100 percent reinsurance agreement that affects the solvency and
integrity of the insurer's or health maintenance organization's
reserves; and
(2) has ceded substantially all of the insurer's or
health maintenance organization's direct and assumed business to
the pooling arrangement.
(b) For purposes of Subsection (a), an insurer or health
maintenance organization is considered to have ceded substantially
all of the insurer's or health maintenance organization's direct
and assumed business to a pooling arrangement if:
(1) the insurer or health maintenance organization
has, during a calendar year, less than $1 million total direct and
assumed written premiums that are not subject to a pooling
arrangement; and
(2) the net income of the business that is not subject
to the pooling arrangement represents less than five percent of the
insurer's or health maintenance organization's capital and surplus.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 401.154 401.155 401.156 401.201 402.001 402.002 402.003 402.004 402.005 402.051 402.052 402.053 402.101 402.102 402.103
Last modified: August 10, 2007
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