reglab/housing_qa huggingface dataset:
TX Ins Code § 493.003 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter A. General Provisions|Section 493.003. Rules

Sec. 493.003.  RULES.  The commissioner may adopt necessary and reasonable rules under this chapter to protect the public interest.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 493.051 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter B. Reinsurance|Section 493.051. Reinsurance Authorized

Sec. 493.051.  REINSURANCE AUTHORIZED.  (a)  An insurer authorized to engage in the business of insurance in this state may reinsure, in any solvent assuming insurer, any risk or part of a risk that both insurers are authorized by law to assume.(b)  An insurer authorized to engage in business in this state may provide reinsurance under this chapter on any line of insurance in which the insurer is authorized to engage in this state.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.03, eff. September 1, 2017.|
TX Ins Code § 493.052 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter B. Reinsurance|Section 493.052. Limitation on Reinsurance of Entire Outstanding Business

Sec. 493.052.  LIMITATION ON REINSURANCE OF ENTIRE OUTSTANDING BUSINESS.  (a)  An insurer may not reinsure the insurer's entire outstanding business in an assuming insurer unless the assuming insurer is authorized to engage in the business of insurance in this state.(b)  Before the date of reinsurance:(1)  the reinsurance contract must be submitted to the commissioner; and(2)  the commissioner must approve the contract as fully protecting the interests of all policyholders.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 493.053 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter B. Reinsurance|Section 493.053. Filing of Reinsurance Schedules

Sec. 493.053.  FILING OF REINSURANCE SCHEDULES.  The commissioner shall require each insurer to file reinsurance schedules:(1)  when the insurer makes the insurer's annual report; and(2)  at other times as the commissioner directs.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 493.054 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter B. Reinsurance|Section 493.054. Accounting for Reinsurance Contracts

Sec. 493.054.  ACCOUNTING FOR REINSURANCE CONTRACTS.  (a)  An insurer shall account for reinsurance contracts and shall record the contracts in the insurer's financial statements in a manner that accurately reflects the effect of the contracts on the insurer's financial condition.(b)  A reinsurance contract may contain a provision allowing the offset of mutual debts and credits between the ceding insurer and the assuming insurer, whether arising out of one or more reinsurance contracts.(c)  The commissioner may adopt reasonable rules relating to:(1)  the accounting and financial statement requirements of this section and the treatment of reinsurance contracts between insurers, including minimum risk transfer standards, asset debits or credits, reinsurance debits or credits, and reserve debits or credits relating to the transfer of all or any part of an insurer's risks or liabilities by reinsurance contracts; and(2)  any contingencies arising from reinsurance contracts.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 493.055 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter B. Reinsurance|Section 493.055. Limitation on Rights Against Reinsurer

Sec. 493.055.  LIMITATION ON RIGHTS AGAINST REINSURER.  A person does not have a right against a reinsurer that is not specifically stated in:(1)  the reinsurance contract; or(2)  a specific agreement between the reinsurer and the person.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 493.101 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.101. Exclusive Procedure for Taking Credit for Reinsurance

Sec. 493.101.  EXCLUSIVE PROCEDURE FOR TAKING CREDIT FOR REINSURANCE.  A ceding insurer may take a credit for reinsurance, as an asset or as a deduction from liability, only as provided by this chapter.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 493.102 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.102. Credit for Reinsurance Generally

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;(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;(4)  is certified as a reinsurer in this state under Section 493.1033 and maintains adequate collateral as determined by the commissioner; or(5)  is an eligible assuming insurer under Section 493.108.(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.Amended by: 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.|
TX Ins Code § 493.103 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.103. Accredited Reinsurer

Sec. 493.103.  ACCREDITED REINSURER.  For purposes of Section 493.102(a)(2), an insurer is accredited as a reinsurer in this state if the insurer:(1)  submits to this state's jurisdiction;(2)  submits to this state's authority to examine the insurer's books and records;(3)  is domiciled and authorized to engage in the business of insurance or reinsurance in at least one state or, if the insurer is a United States branch of an alien assuming insurer, is entered through and authorized to engage in the business of insurance or reinsurance in at least one state;(4)  annually files with the department a copy of the annual statement the insurer files with the insurance department of the insurer's state of domicile; and(5)  maintains a surplus as regards policyholders in an amount of at least $20 million.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 493.1033 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.1033. Credit Allowed for Certain Certified Reinsurers

Sec. 493.1033.  CREDIT ALLOWED FOR CERTAIN CERTIFIED REINSURERS.  (a)  Credit shall be allowed when the reinsurance is ceded to an assuming insurer that:(1)  is certified by the commissioner as a reinsurer in this state; and(2)  secures its obligations in accordance with the requirements of this section and Sections 493.1034-493.1038.(b)  To be eligible for certification, the assuming insurer must:(1)  be domiciled and licensed to transact insurance or reinsurance in a jurisdiction listed as qualified on the list published by the commissioner under Section 493.1035;(2)  maintain minimum capital and surplus in an amount required by the commissioner by rule;(3)  maintain a financial strength rating from not fewer than two rating agencies determined to be acceptable in accordance with rules adopted by the commissioner;(4)  agree to submit to the jurisdiction of any court of competent jurisdiction in any state of the United States;(5)  appoint the commissioner as its agent for service of process in this state;(6)  provide security for 100 percent of the assuming insurer's liabilities for reinsurance ceded by United States ceding insurers if the assuming insurer resists enforcement of a final judgment of a court of the United States;(7)  meet application information filing requirements, as established by the commissioner by rule, for the initial application for certification and on an ongoing basis; and(8)  satisfy any other requirements for certification required by the commissioner by rule.(c)  In determining eligibility for certification under Subsection (b), the commissioner may defer to the certification granted and financial strength rating assigned by a National Association of Insurance Commissioners accredited jurisdiction.(d)  Credit for reinsurance under this section applies only to a reinsurance contract entered into or renewed on or after the effective date of the certification of the assuming insurer.|Added by Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.05, eff. September 1, 2017.|
TX Ins Code § 493.1034 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.1034. Certain Associations May Be Certified Reinsurers

Sec. 493.1034.  CERTAIN ASSOCIATIONS MAY BE CERTIFIED REINSURERS.  (a)  An association that includes incorporated and individual unincorporated underwriters may be a certified reinsurer under Section 493.1033.  To be eligible for certification the association must satisfy the requirements of Section 493.1033 and this section.(b)  The association must satisfy minimum capital and surplus requirements through the capital and surplus equivalents, net of liabilities, of the association and its members that must include a joint central fund in an amount determined by the commissioner to provide adequate protection that may be applied to any unsatisfied obligation of the association or any of its members.(c)  The incorporated members of the association may not be engaged in any business other than underwriting and are subject to the same level of regulation and solvency control by the association's domiciliary regulator as are the unincorporated members.(d)  Not later than the 90th day after the date the association's financial statements are due to be filed with the association's domiciliary regulator, the association shall provide to the commissioner:(1)  an annual certification by the association's domiciliary regulator of the solvency of each underwriter member; or(2)  if a certification described by Subdivision (1) is unavailable, financial statements, prepared by independent public accountants, of each underwriter member of the association.|Added by Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.05, eff. September 1, 2017.|
TX Ins Code § 493.1035 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.1035. Qualified Jurisdictions

Sec. 493.1035.  QUALIFIED JURISDICTIONS.  (a)  The commissioner shall develop and publish a list of qualified jurisdictions in one of which an assuming insurer must be licensed and domiciled in order to be considered for certification by the commissioner under Section 493.1033 as a certified reinsurer.  In developing the list, the commissioner shall consider the list of qualified jurisdictions published through the National Association of Insurance Commissioners committee process.(b)  In order to determine whether a jurisdiction of an assuming insurer located outside of the United States is eligible to be recognized as a qualified jurisdiction under Subsection (a), the commissioner shall evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits, and extent of reciprocal recognition afforded by the jurisdiction to reinsurers licensed and domiciled in the United States.(c)  In order to be qualified a jurisdiction must agree in writing to share information and cooperate with the commissioner with respect to all certified reinsurers doing business in the jurisdiction.(d)  A jurisdiction may not be recognized as a qualified jurisdiction if the commissioner has determined that the jurisdiction does not adequately and promptly enforce final United States judgments and arbitration awards.  Additional factors may be considered in the discretion of the commissioner.(e)  If the commissioner approves under this section a jurisdiction as qualified that does not appear on the list of qualified jurisdictions published through the National Association of Insurance Commissioners committee process, the commissioner shall provide documentation in accordance with rules adopted by the commissioner.  The rules must include a requirement for a thoroughly documented justification of the approval.(f)  The commissioner shall include as a qualified jurisdiction under this section a United States jurisdiction that meets the requirements for accreditation under the National Association of Insurance Commissioners financial regulation standards and accreditation program.(g)  If a certified reinsurer's domiciliary jurisdiction ceases to be a qualified jurisdiction, the commissioner may suspend the reinsurer's certification indefinitely, instead of revoking the certification.|Added by Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.05, eff. September 1, 2017.|
TX Ins Code § 493.1037 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.1037. Certification by National Association of Insurance Commissioners

Sec. 493.1037.  CERTIFICATION BY NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS.  If an applicant for certification has been certified as a reinsurer in a National Association of Insurance Commissioners accredited jurisdiction:(1)  the commissioner may make a determination to defer to the accredited jurisdiction's certification and the financial strength rating assigned by that jurisdiction; and(2)  if the commissioner makes the determination authorized by Subdivision (1), the applicant shall be considered to be a certified reinsurer in this state.|Added by Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.05, eff. September 1, 2017.|
TX Ins Code § 493.1038 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.1038. Suspension or Revocation of Accreditation or Certification; Inactive Status

Sec. 493.1038.  SUSPENSION OR REVOCATION OF ACCREDITATION OR CERTIFICATION; INACTIVE STATUS.  (a)  A certified reinsurer that ceases to assume new business in this state may request to maintain its certification in inactive status to continue to qualify for a reduction in security for in-force business.  An inactive certified reinsurer shall continue to comply with all applicable requirements of this section, and the commissioner shall assign a financial strength rating that takes into account, if relevant, the reasons the reinsurer is not assuming new business.(b)  If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the commissioner may, after notice and opportunity for hearing, suspend or revoke the reinsurer's accreditation or certification.  A suspension or revocation may not take effect until after the date of the commissioner's order on the hearing, unless:(1)  the reinsurer waives its right to hearing;(2)  the commissioner's order is based on regulatory action by the reinsurer's domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer's eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer under this section; or(3)  the commissioner finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the commissioner's action.(c)  While a reinsurer's accreditation or certification is suspended, a reinsurance contract issued or renewed after the effective date of the suspension does not qualify for credit except to the extent that the reinsurer's obligations under the contract are secured in accordance with Subchapter D.(d)  If a reinsurer's accreditation or certification is revoked, credit for reinsurance may not be granted after the effective date of the revocation except to the extent that the reinsurer's obligations under the contract are secured in accordance with Section 493.1036 or Subchapter D.|Added by Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.05, eff. September 1, 2017.|
TX Ins Code § 493.1039 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.1039. Concentration Risk

Sec. 493.1039.  CONCENTRATION RISK.  (a)  A ceding insurer shall manage its reinsurance recoverable proportionate to its book of business.  A domestic ceding insurer shall notify the commissioner not later than the 30th day after the date reinsurance recoverable from any single assuming insurer, or group of affiliated assuming insurers, exceeds or is likely to exceed 50 percent of the domestic ceding insurer's last reported surplus to policyholders.  The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.(b)  A ceding insurer shall diversify its reinsurance program.  A domestic ceding insurer shall notify the commissioner not later than the 30th day after the date the insurer cedes to any single assuming insurer, or group of affiliated assuming insurers, an amount that exceeds or is likely to exceed 20 percent of the ceding insurer's gross written premium in the prior calendar year.  The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.|Added by Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 2.05, eff. September 1, 2017.|
TX Ins Code § 493.104 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.104. Credit for Funds Securing Reinsurance Obligations

Sec. 493.104.  CREDIT FOR FUNDS SECURING REINSURANCE OBLIGATIONS.  (a)  Subject to Subsection (b), any asset or deduction from liability for reinsurance ceded to an assuming insurer that does not meet the requirements of Section 493.102 shall be allowed in an amount that does not exceed the liabilities carried by the ceding insurer and in the amount of funds held by or on behalf of the ceding insurer under a reinsurance contract with the assuming insurer, including funds held in trust for the ceding insurer, as security for the payment of obligations under the contract.(b)  The funds held as security:(1)  must be held in the United States subject to withdrawal solely by and under the exclusive control of the ceding insurer or, in the case of a trust, held in a qualified United States financial institution that has been granted the authority to operate with fiduciary powers; and(2)  may be in the form of:(A)  cash;(B)  securities that are listed by the Securities Valuation Office of the National Association of Insurance Commissioners and qualify as admitted assets;(C)  subject to Section 493.105, a clean, irrevocable, unconditional letter of credit, issued or confirmed by a qualified United States financial institution that has been determined by the commissioner or the Securities Valuation Office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing that are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner; or(D)  another form of security acceptable to the commissioner.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2015, 84th Leg., R.S., Ch. 79 (S.B. 1093), Sec. 2, eff. September 1, 2015.|
TX Ins Code § 493.105 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.105. Acceptability of Certain Letters of Credit

Sec. 493.105.  ACCEPTABILITY OF CERTAIN LETTERS OF CREDIT.  A letter of credit issued or confirmed by an institution that meets the standards prescribed by Section 493.104(b)(2)(C) as of the date the letter is issued or confirmed, but later fails to meet those standards, continues to be acceptable as security under Section 493.104 until the earliest of:(1)  the letter's expiration;(2)  the letter's extension, renewal, modification, or amendment after the date the institution fails to meet those standards; or(3)  the expiration of the three-month period after the date the institution fails to meet those standards.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 493.106 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle F - Reinsurance|Chapter 493 - Authorized Reinsurance; Credit and Accounting|Subchapter C. Credit for Reinsurance|Section 493.106. Credit for Reinsurance: Direct Payment on Liability Required

Sec. 493.106.  CREDIT FOR REINSURANCE:  DIRECT PAYMENT ON LIABILITY REQUIRED.  (a)  A ceding insurer may not be given credit for reinsurance ceded, as an asset or as a deduction from liability, in an accounting or financial statement unless the reinsurance is payable by the assuming insurer:(1)  on the liability of the ceding insurer under the contracts reinsured, without diminution because of the ceding insurer's insolvency; and(2)  directly to the ceding insurer or to the ceding insurer's domiciliary liquidator or receiver.(b)  Subsection (a)(2) does not apply if:(1)  the reinsurance contract specifically provides that, if the ceding insurer is insolvent, the reinsurance is payable to a payee other than one described by Subsection (a)(2); or(2)  the assuming insurer, with the direct insured's consent, has assumed the ceding insurer's policy obligations to the payee as the assuming insurer's direct obligations to the payee under the policy as a substitute for the ceding insurer's obligations.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|