Tex.
Ins. Code Section 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 (Credit Allowed for Certain Certified Reinsurers). To be eligible for certification the association must satisfy the requirements of Section 493.1033 (Credit Allowed for Certain Certified Reinsurers) 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.
Source:
Section 493.1034 — Certain Associations May Be Certified Reinsurers, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.493.htm#493.1034 (accessed Apr. 29, 2024).
