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

Accessed:
Jun. 5, 2024

§ 4152.215’s source at texas​.gov