Texas Insurance Code - Section 493.054. Accounting For Reinsurance Contracts
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§ 493.054. 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.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 492.157 493.001 493.002 493.003 493.051 493.052 493.053 493.054 493.055 493.101 493.102 493.103 493.104 493.105 493.106
Last modified: August 11, 2007
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