Texas Insurance Code - Section 493.102. Credit For Reinsurance Generally
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Texas Lawyer > Insurance Code > Texas Insurance Code - Section 493.102. Credit For Reinsurance Generally
§ 493.102. 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 493.103; 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: 493.003 493.051 493.052 493.053 493.054 493.055 493.101 493.102 493.103 493.104 493.105 493.106 493.107 493.151 493.152
Last modified: August 11, 2007
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