Ins. Code Section 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 (Accredited Reinsurer);
(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 (Credit Allowed for Certain Certified Reinsurers) and maintains adequate collateral as determined by the commissioner; or
(5)is an eligible assuming insurer under Section 493.108 (Credit Allowed for Certain Eligible Assuming Insurers).
(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.
Section 493.102 — Credit for Reinsurance Generally,
https://statutes.capitol.texas.gov/Docs/IN/htm/IN.493.htm#493.102 (accessed Dec. 2, 2023).