Texas Insurance Code

§ 493.102 — CREDIT FOR REINSURANCE GENERALLY

IN § 493.102Title 4. REGULATION OF SOLVENCY · Part F. REINSURANCE · Ch. 493. AUTHORIZED REINSURANCE; CREDIT AND ACCOUNTING · Art. C. CREDIT FOR REINSURANCE

Statute text

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(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;

(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;

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Legislative history

Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.04, eff. September 1, 2017. Acts 2021, 87th Leg., R.S., Ch. 22 (H.B. 1689), Sec. 1, eff. January 1, 2022.