Texas Insurance Code
§ 493.152 — COMPOSITION OF TRUST
IN § 493.152Title 4. REGULATION OF SOLVENCY · Part F. REINSURANCE · Ch. 493. AUTHORIZED REINSURANCE; CREDIT AND ACCOUNTING · Art. D. REQUIREMENTS FOR TRUST CREDIT ALLOWANCE
Statute text
View on source(a)If the assuming insurer is a single insurer, the trust must:
(1)consist of a trusteed account representing the assuming insurer's liabilities attributable to business written in the United States; and
(2)include a trusteed surplus of at least $20 million, except after the assuming insurer has permanently discontinued underwriting new business secured by the trust for not less than three calendar years, the insurance commissioner or other chief insurance regulatory official with principal regulatory oversight over the trust may authorize a reduction in the required trusteed surplus, but only after a finding, based on an assessment of the risk, that the new required surplus level is adequate for the protection of United States ceding insurers, policyholders, and claimants in light of reasonably foreseeable adverse loss development. (a-1) The risk assessment described by Subsection (a)(2) may involve an actuarial review, including an independent analysis of reserves and cash flows, and must consider all material risk factors, including when applicable, the lines of business involved, the stability of the incurred loss estimates, and the effect of the surplus requirements on the assuming insurer's liquidity or solvency. The minimum required trusteed surplus may not be reduced to an amount less than 30 percent of the assuming insurer's liabilities attributable to reinsurance ceded by United States ceding insurers.
(b)If the assuming insurer is a group of insurers that includes an unincorporated individual insurer:
(1)the trust must:
(A)consist of a trusteed account representing the group's liabilities attributable to business written in the United States; and
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Legislative history
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.07, eff. September 1, 2017.