Tex.
Ins. Code Section 493.1038
Suspension or Revocation of Accreditation or Certification; Inactive Status
(a)
A certified reinsurer that ceases to assume new business in this state may request to maintain its certification in inactive status to continue to qualify for a reduction in security for in-force business. An inactive certified reinsurer shall continue to comply with all applicable requirements of this section, and the commissioner shall assign a financial strength rating that takes into account, if relevant, the reasons the reinsurer is not assuming new business.(b)
If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the commissioner may, after notice and opportunity for hearing, suspend or revoke the reinsurer’s accreditation or certification. A suspension or revocation may not take effect until after the date of the commissioner’s order on the hearing, unless:(1)
the reinsurer waives its right to hearing;(2)
the commissioner’s order is based on regulatory action by the reinsurer’s domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer’s eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer under this section; or(3)
the commissioner finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the commissioner’s action.(c)
While a reinsurer’s accreditation or certification is suspended, a reinsurance contract issued or renewed after the effective date of the suspension does not qualify for credit except to the extent that the reinsurer’s obligations under the contract are secured in accordance with Subchapter D.(d)
If a reinsurer’s accreditation or certification is revoked, credit for reinsurance may not be granted after the effective date of the revocation except to the extent that the reinsurer’s obligations under the contract are secured in accordance with Section 493.1036 (Requirements for Certified Reinsurer) or Subchapter D.
Source:
Section 493.1038 — Suspension or Revocation of Accreditation or Certification; Inactive Status, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.493.htm#493.1038 (accessed Apr. 29, 2024).
