Texas Insurance Code Title 13, Chapter 4152 - Reinsurance Intermediaries

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 4152.001 - Definitions
  In this chapter: (1) "Actuary" means a member in good standing of the American Academy of Actuaries. (2) "Broker" means a person, other than an...
• Texas Section 4152.002 - Classification As Commercially Domiciled Insurer
  (a) For purposes of this chapter, a foreign or alien insurer authorized to engage in the business of insurance in this state is a commercially...
• Texas Section 4152.003 - Rights Of Third Parties Not Affected
  This chapter does not restrict the rights of or confer any additional rights on a policyholder, claimant, creditor, or other third party. Added by Acts...

SUBCHAPTER B LICENSE REQUIREMENTS

• Texas Section 4152.004 - Rules
  The commissioner may adopt reasonable rules as necessary to implement this chapter. Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1,
• Texas Section 4152.051 - License Required
  (a) A person may not act as a broker or manager in this state for an insurer engaged in the business of insurance or reinsurance...
• Texas Section 4152.052 - Qualifications
  The commissioner may establish qualifications for a reinsurance intermediary license as reasonably necessary to fulfill the requirements of this chapter. Added by Acts 2003, 78th...
• Texas Section 4152.053 - Application
  (a) An application for a reinsurance intermediary license may not be accepted unless the application shows on its face that the applicant has been engaged...
• Texas Section 4152.054 - Service Of Notice, Orders, And Process
  (a) An applicant for a reinsurance intermediary license who is not a resident of this state must: (1) designate the commissioner as agent for service...
• Texas Section 4152.055 - Fees
  (a) The department shall collect a nonrefundable licensing fee from each reinsurance intermediary who applies for an original or renewal license in this state. (b)...
• Texas Section 4152.056 - License Issuance
  The commissioner shall issue a reinsurance intermediary license to a person who complies with this chapter. Added by Acts 2003, 78th Leg., ch. 1274, Sec....
• Texas Section 4152.057 - Persons Authorized To Act Under License
  (a) A reinsurance intermediary license issued to a firm or association authorizes each member of the firm or association and any designated employee to act...
• Texas Section 4152.058 - Bond Or Errors And Omissions Policy
  (a) The commissioner may require a reinsurance intermediary to: (1) file a bond with the commissioner for the protection of all insurers represented; or (2)...

SUBCHAPTER C EXAMINATION OF REINSURANCE INTERMEDIARIES

• Texas Section 4152.059 - License Expiration And Renewal
  (a) A reinsurance intermediary license is valid for two years from the date of issuance and may be renewed for two-year terms. (b) The commissioner...
• Texas Section 4152.101 - Examination By Commissioner
  (a) A reinsurance intermediary is subject to examination by the commissioner of the reinsurance intermediary's: (1) financial condition; and (2) compliance with the laws of...
• Texas Section 4152.102 - Access To And Maintenance Of Books, Bank Accounts, And Records
  (a) The commissioner is entitled to access to all books, bank accounts, and records of a reinsurance intermediary. (b) A reinsurance intermediary shall maintain books,...
• Texas Section 4152.103 - Conduct Of Examination
  The commissioner, one or more commissioned examiners, a certified public accountant, or another person qualified to perform the examination shall conduct an examination under this...

SUBCHAPTER D REQUIREMENTS RELATING TO BROKERS

• Texas Section 4152.104 - Examination Expense
  (a) A reinsurance intermediary who is examined under this subchapter shall pay an amount for the expense of the examination that the commissioner certifies as...
• Texas Section 4152.151 - Contract Between Broker And Insurer
  (a) A broker and an insurer represented by the broker may enter into a transaction only under a written contract that: (1) is executed by...
• Texas Section 4152.152 - Placement Of Reinsurance With Unauthorized Reinsurer
  Unless the ceding insurer releases the broker in writing from the broker's obligations under this section, a broker who places reinsurance on behalf of an...
• Texas Section 4152.153 - Transaction Records
  (a) For at least 10 years after the expiration of each contract of reinsurance transacted by a broker, the broker shall maintain a complete record...

SUBCHAPTER E REQUIREMENTS RELATING TO MANAGERS

• Texas Section 4152.154 - Employment Of Person By Insurer And Broker
  A person may not be employed by an insurer and a broker with whom the insurer transacts business unless the broker is: (1) under common...
• Texas Section 4152.201 - Contract Between Manager And Insurer
  (a) A manager and an insurer represented by the manager may enter into a transaction only under a written contract that: (1) is executed by...
• Texas Section 4152.202 - Termination Of Contract
  An insurer may: (1) terminate a contract entered into under Section 4152.201 for cause on written notice to the manager by certified mail, return receipt...
• Texas Section 4152.203 - Accounting For Transactions
  A manager who enters into a contract with an insurer under Section 4152.201 shall provide accounts to the insurer at least quarterly that accurately detail...
• Texas Section 4152.204 - Management Of Money
  (a) A manager shall pay an insurer at least monthly all money due the insurer under a contract entered into under Section 4152.201. (b) The...
• Texas Section 4152.205 - Transaction Records
  (a) For at least 10 years after the expiration of each reinsurance contract transacted by a manager, the manager shall maintain a complete record for...
• Texas Section 4152.206 - Contract Assignment Prohibited
  A manager may not assign in whole or in part a contract entered into under Section 4152.201. Added by Acts 2003, 78th Leg., ch. 1274,...
• Texas Section 4152.207 - Compliance With Underwriting And Rating Standards Of Insurer
  A manager shall comply with the written underwriting and rating standards established by an insurer with whom the manager has entered into a contract under...
• Texas Section 4152.208 - Settlement Of Claims
  (a) This section applies only to a contract entered into under Section 4152.201 that permits a manager to settle claims on behalf of an insurer....
• Texas Section 4152.209 - Payment Of Interim Profits
  If a contract entered into under Section 4152.201 provides for the sharing of interim profits by the manager, interim profits may not be paid until:...
• Texas Section 4152.210 - Audited Statement Of Manager's Financial Condition
  (a) A manager shall provide annually to each insurer and reinsurer with whom the manager transacts business an audited statement of the manager's financial condition....
• Texas Section 4152.211 - Disclosure Of Relationships With Other Insurers
  Before ceding or assuming any business on behalf of an insurer under a contract entered into under Section 4152.201, a manager shall disclose to the...
• Texas Section 4152.212 - Acts Of Manager Considered Acts Of Insurer
  The acts of a manager are considered to be the acts of the insurer on whose behalf the manager is acting. Added by Acts 2003,...
• Texas Section 4152.213 - Actuary's Opinion On Adequacy Of Loss Reserves
  In addition to any other required loss reserve certification, a manager who establishes loss reserves shall provide annually, or more frequently as required by other...
• Texas Section 4152.214 - Placement Of Reinsurance With Unauthorized Reinsurer
  (a) Unless the ceding insurer releases the manager in writing from the manager's obligations under this section, a manager who places reinsurance on behalf of...
• Texas Section 4152.215 - Prohibitions
  (a) A reinsurance intermediary acting as a manager may not: (1) bind retrocessions on behalf of an insurer, except that the manager may bind facultative...

SUBCHAPTER F REQUIREMENTS RELATING TO INSURERS

• Texas Section 4152.216 - Employment Of Person By Insurer And Manager
  A person may not be employed by an insurer and a manager with whom the insurer transacts business unless the manager is: (1) under common...
• Texas Section 4152.251 - Engagement Of Services Of Unlicensed Broker Or Manager
  (a) Except as provided by Subsection (b), an insurer may not engage the services of a person to act as a broker or manager on...
• Texas Section 4152.252 - Audited Statement Of Manager's Financial Condition
  An insurer shall obtain annually an audited statement as provided by Section 4152.210 of the financial condition of each manager with whom the insurer transacts...
• Texas Section 4152.253 - Review Of Underwriting And Claims Processing Operations
  An insurer shall conduct at least semiannually an on-site review of the underwriting and claims processing operations of a manager with whom the insurer enters...
• Texas Section 4152.254 - Authority For Retrocessional Contracts Or Participation In Reinsurance Syndicates
  Binding authority for all retrocessional contracts or participation in reinsurance syndicates rests with an officer of the insurer. That officer may not be affiliated with...
• Texas Section 4152.255 - Notification Of Termination Of Manager's Contract
  (a) Not later than the 30th day after the date an insurer terminates a manager's contract, the insurer shall provide written notice to the commissioner...

SUBCHAPTER G DISCIPLINE AND ENFORCEMENT

• Texas Section 4152.256 - Appointment Of Certain Persons To Board Of Directors Prohibited
  (a) This section does not apply to a relationship governed by Chapter 823. (b) An insurer may not appoint to the insurer's board of directors...
• Texas Section 4152.301 - Grounds For License Denial Or Disciplinary Action
  The department may deny an application for a license or discipline a license holder under Subchapter C, Chapter 4005, if the department determines that the...
• Texas Section 4152.302 - Imposition Of Sanctions
  (a) The commissioner may impose or seek any sanction authorized by law, including the penalties authorized by Chapters 82 and 83, against a reinsurance intermediary,...

Last modified: September 28, 2016