Texas Insurance Code - Section 492.055. Accounting For Reinsurance Contracts
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§ 492.055. ACCOUNTING FOR REINSURANCE CONTRACTS. (a) An
insurer shall account for reinsurance contracts and shall record
the contracts in the insurer's financial statements in a manner
that accurately reflects the effect of the contracts on the
insurer's financial condition.
(b) A reinsurance contract may contain a provision allowing
the offset of mutual debts and credits between the ceding insurer
and the assuming insurer, whether arising out of one or more
reinsurance contracts.
(c) The commissioner may adopt reasonable rules relating
to:
(1) the accounting and financial statement
requirements of this section and the treatment of reinsurance
contracts between insurers, including minimum risk transfer
standards, asset debits or credits, reinsurance debits or credits,
and reserve debits or credits relating to the transfer of all or any
part of an insurer's risks or liabilities by reinsurance contracts;
and
(2) any contingencies arising from reinsurance
contracts.
(d) A rule adopted under Subsection (c) after September 1,
1995, applies to:
(1) a reinsurance contract entered into on or after
the effective date of the rule; and
(2) a reinsurance contract that is amended on or after
the effective date of the rule.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 492.001 492.002 492.003 492.051 492.052 492.053 492.054 492.055 492.056 492.101 492.102 492.103 492.104 492.105 492.106
Last modified: August 11, 2007
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