Sec. 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 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Section: Previous 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 NextLast modified: September 28, 2016