Texas Insurance Code - Section 493.156. Certain Trusteed Assuming Insurers: Requirements For Reinsurance Contract
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§ 493.156. CERTAIN TRUSTEED ASSUMING INSURERS:
REQUIREMENTS FOR REINSURANCE CONTRACT. (a) A ceding insurer may
not be allowed credit under Section 493.102(a)(3) for reinsurance
ceded to an assuming insurer that is not authorized or accredited to
engage in the business of insurance or reinsurance in this state
unless the assuming insurer agrees in the reinsurance contract:
(1) that, if the assuming insurer fails to perform the
assuming insurer's obligations under the reinsurance contract, the
assuming insurer, at the request of the ceding insurer, will:
(A) submit to the jurisdiction of a court in any
state of the United States;
(B) comply with all requirements necessary to
give the court jurisdiction; and
(C) abide by the final decision of that court or,
if the court's decision is appealed, of the appellate court; and
(2) to designate the commissioner or an attorney as an
agent for service of process in any action, suit, or proceeding
instituted by or on behalf of the ceding insurer.
(b) This section is not intended to conflict with or
override a provision in a reinsurance contract that requires the
parties to arbitrate the parties' disputes.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 493.106 493.107 493.151 493.152 493.153 493.154 493.155 493.156 493.157 494.001 494.002 494.003 501.001 501.002 501.003
Last modified: August 10, 2007
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