Texas Insurance Code - Section 422.005. Exemptions
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§ 422.005. EXEMPTIONS. (a) This chapter does not apply
to:
(1) variable contracts for which separate accounts are
required to be maintained;
(2) a reinsurance agreement or any trust account
related to the reinsurance agreement if the agreement and trust
account meet the requirements of Chapter 492 or 493;
(3) an assessment-as-needed company or insurance
coverage written by an assessment-as-needed company;
(4) an insurer while:
(A) the insurer is subject to a conservatorship
order issued by the commissioner; or
(B) a court-appointed receiver is in charge of
the insurer's affairs; or
(5) an insurer's reserve assets that are held,
deposited, pledged, or otherwise encumbered to secure, offset,
protect, or meet the insurer's reserve liabilities established in a
reinsurance agreement under which the insurer reinsures the
insurance policy liabilities of a ceding insurer if:
(A) the ceding insurer and the reinsurer are
authorized to engage in business in this state; and
(B) in accordance with a written agreement
between the ceding insurer and the reinsurer, reserve assets
substantially equal to the reserve liabilities the reinsurer must
establish on the reinsured business are:
(i) deposited by or withheld from the
reinsurer and held in the custody of the ceding insurer, or
deposited and held in a trust account with a state or national bank
domiciled in this state, as security for the payment of the
reinsurer's obligations under the reinsurance agreement;
(ii) held subject to withdrawal by the
ceding insurer; and
(iii) held under the separate or joint
control of the ceding insurer.
(b) Notwithstanding this section, the commissioner may
examine any asset, reinsurance agreement, or deposit arrangement
described by Subsection (a)(5) at any time, in accordance with the
commissioner's authority under this code to examine an insurer.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 404.053 421.001 421.002 422.001 422.002 422.003 422.004 422.005 422.006 422.051 422.052 422.053 422.054 423.001 423.002
Last modified: August 11, 2007
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