Texas Insurance Code - Section 492.102. Credit For Reinsurance Generally
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Texas Lawyer > Insurance Code > Texas Insurance Code - Section 492.102. Credit For Reinsurance Generally
§ 492.102. CREDIT FOR REINSURANCE GENERALLY. (a) A
ceding insurer may be allowed credit for reinsurance ceded, as an
asset or as a deduction from liability, only if the reinsurance is
ceded to an assuming insurer that:
(1) is authorized to engage in the business of
insurance or reinsurance in this state;
(2) is accredited as a reinsurer in this state, as
provided by Section 492.103; or
(3) subject to Subchapter D, maintains, in a qualified
United States financial institution that has been granted the
authority to operate with fiduciary powers, a trust fund to pay
valid claims of:
(A) the assuming insurer's United States
policyholders and ceding insurers; and
(B) the policyholders' and ceding insurers'
assigns and successors in interest.
(b) Notwithstanding Subsection (a), a ceding insurer may be
allowed credit for reinsurance ceded to an assuming insurer that
does not meet the requirements of that subsection, but only with
respect to the insurance of risks located in a jurisdiction in which
the reinsurance is required by the jurisdiction's law, including
regulations, to be ceded to an assuming insurer that does not meet
the requirements of that subsection.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 492.051 492.052 492.053 492.054 492.055 492.056 492.101 492.102 492.103 492.104 492.105 492.106 492.107 492.151 492.152
Last modified: August 11, 2007
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