Tex. Ins. Code 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 retrocessions under obligatory retrocessional agreements if the contract entered into with the insurer under Section 4152.201 (Contract Between Manager and Insurer) contains reinsurance underwriting guidelines for those retrocessions that include:

(A)

a list of reinsurers with whom those automatic agreements are in effect; and

(B)

for each reinsurer:
(i)
the coverages and amounts or percentages that may be reinsured; and
(ii)
commission schedules;

(2)

commit an insurer to participate in a reinsurance syndicate;

(3)

appoint or contract with a broker without ensuring that the broker is qualified to act as a manager under this chapter;

(4)

without prior approval of the insurer, pay or commit an insurer to pay a claim that exceeds the lesser of:

(A)

an amount specified by the insurer; or

(B)

one percent of the insurer’s policyholders’ surplus as of December 31 of the last complete calendar year; or

(5)

collect a payment from a retrocessionaire or commit an insurer to a claim settlement with a retrocessionaire without prior approval of the insurer.

(b)

If prior approval is given as provided by Subsection (a)(5), a report must be forwarded to the reinsurer as provided by Section 4152.203 (Accounting for Transactions).
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.

Source: Section 4152.215 — Prohibitions, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­4152.­htm#4152.­215 (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

§ 4152.215’s source at texas​.gov