Texas Insurance Code - Section 492.106. Credit For Reinsurance: Direct Payment On Liability Required
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§ 492.106. CREDIT FOR REINSURANCE: DIRECT PAYMENT ON
LIABILITY REQUIRED. A ceding insurer may not be given credit for
reinsurance ceded, as an asset or as a deduction from liability, in
an accounting or financial statement unless the reinsurance is
payable by the assuming insurer:
(1) on the liability of the ceding insurer under the
contracts reinsured, without diminution because of the ceding
insurer's insolvency; and
(2) directly to the ceding insurer or to the ceding
insurer's domiciliary liquidator or receiver.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 492.055 492.056 492.101 492.102 492.103 492.104 492.105 492.106 492.107 492.151 492.152 492.153 492.154 492.155 492.156
Last modified: August 10, 2007
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