Tex. Ins. Code 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 an authorized ceding insurer with a reinsurer that is not authorized, accredited, or trusteed in this state under Chapter 493 (Authorized Reinsurance; Credit and Accounting) shall:

(1)

exercise due diligence in inquiring into the financial condition of the reinsurer;

(2)

disclose to the ceding insurer the manager’s findings in connection with the inquiry under Subdivision (1); and

(3)

make available to the ceding insurer a copy of the current financial statement of the reinsurer.

(b)

A ceding insurer that releases a manager from the manager’s obligations under Subsection (a) assumes those obligations.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 2J.007, eff. April 1, 2009.
Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070), Sec. 3.15, eff. September 1, 2017.

Source: Section 4152.214 — Placement of Reinsurance with Unauthorized Reinsurer, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­4152.­htm#4152.­214 (accessed Jun. 5, 2024).

4152.001
Definitions 4152.002
Classification as Commercially Domiciled Insurer 4152.003
Rights of Third Parties Not Affected 4152.004
Rules 4152.051
License Required 4152.052
Qualifications 4152.053
Application 4152.054
Service of Notice, Orders, and Process 4152.055
Fees 4152.056
License Issuance 4152.057
Persons Authorized to Act Under License 4152.058
Bond or Errors and Omissions Policy 4152.059
License Expiration and Renewal 4152.101
Examination by Commissioner 4152.102
Access to and Maintenance of Books, Bank Accounts, and Records 4152.103
Conduct of Examination 4152.104
Examination Expense 4152.151
Contract Between Broker and Insurer 4152.152
Placement of Reinsurance with Unauthorized Reinsurer 4152.153
Transaction Records 4152.154
Employment of Person by Insurer and Broker 4152.201
Contract Between Manager and Insurer 4152.202
Termination of Contract 4152.203
Accounting for Transactions 4152.204
Management of Money 4152.205
Transaction Records 4152.206
Contract Assignment Prohibited 4152.207
Compliance with Underwriting and Rating Standards of Insurer 4152.208
Settlement of Claims 4152.209
Payment of Interim Profits 4152.210
Audited Statement of Manager’s Financial Condition 4152.211
Disclosure of Relationships with Other Insurers 4152.212
Acts of Manager Considered Acts of Insurer 4152.213
Actuary’s Opinion on Adequacy of Loss Reserves 4152.214
Placement of Reinsurance with Unauthorized Reinsurer 4152.215
Prohibitions 4152.216
Employment of Person by Insurer and Manager 4152.251
Engagement of Services of Unlicensed Broker or Manager 4152.252
Audited Statement of Manager’s Financial Condition 4152.253
Review of Underwriting and Claims Processing Operations 4152.254
Authority for Retrocessional Contracts or Participation in Reinsurance Syndicates 4152.255
Notification of Termination of Manager’s Contract 4152.256
Appointment of Certain Persons to Board of Directors Prohibited 4152.301
Grounds for License Denial or Disciplinary Action 4152.302
Imposition of Sanctions
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 4152.214’s source at texas​.gov