CHAPTER 491. GENERAL REINSURANCE REQUIREMENTS
INSURANCE CODE
TITLE 4. REGULATION OF SOLVENCY
SUBTITLE F. REINSURANCE
CHAPTER 491. GENERAL REINSURANCE REQUIREMENTS
SUBCHAPTER A. REINSURANCE
Sec. 491.001. INAPPLICABILITY OF SUBCHAPTER. This subchapter
does not apply to:
(1) life insurance;
(2) health insurance;
(3) annuity contracts;
(4) title insurance;
(5) workers' compensation insurance;
(6) employers' liability insurance coverage; or
(7) any policy or kind of coverage for which the maximum
possible loss to the insurer is not readily ascertainable on the
policy's issuance.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 491.002. REINSURANCE PERMITTED. An insurer or reinsurer
authorized to engage in the business of insurance or reinsurance
in this state may reinsure all or part of a single risk in
another solvent insurer.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 491.003. RISK LIMITATION FOR DOMESTIC OR FOREIGN INSURER.
An insurer incorporated under the laws of this state, another
state, or the United States and authorized to engage in business
in this state may not expose itself to a loss or hazard on a
single risk in an amount that exceeds 10 percent of the insurer's
surplus for policyholders unless the insurer reinsures the excess
in another solvent insurer.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 491.004. RISK LIMITATION FOR ALIEN INSURER. An insurer
incorporated under the laws of a jurisdiction other than this
state, another state, or the United States and authorized to
engage in business in this state may not, unless the insurer
reinsures the excess in another solvent insurer, expose itself to
a loss or hazard on a single risk in an amount that exceeds the
sum of:
(1) 10 percent of the insurer's deposit with the statutory
officer in the state through which the insurer is authorized to
engage in business in the United States; and
(2) 10 percent of the other surplus for policyholders of the
insurer's United States branch.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 491.005. COMPLIANCE WITH OTHER LAW. Reinsurance that is
required or permitted by this subchapter must comply with Chapter
493.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
SUBCHAPTER B. COMPUTATION OF REINSURANCE RESERVE
Sec. 491.051. COMPUTATION OF RESERVE FOR INSURER WITH NO BASIS
PRESCRIBED BY LAW. For an insurer engaged in the business of a
kind of insurance in this state, for which no basis is prescribed
by law, the department shall compute the reinsurance reserve on
the basis prescribed by Section 862.102 for an insurer writing
fire insurance.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.
Sec. 491.052. COMPUTATION OF REINSURANCE RESERVES FOR CERTAIN
INSURERS. (a) On December 31 of each year, or as soon as
practicable after that date, the department shall, in accordance
with Section 491.051, compute the reinsurance reserve for all
unexpired risks of each insurer organized under the laws of this
state or engaged in the business of insurance in this state.
(b) This section does not apply to:
(1) life insurance;
(2) fire insurance;
(3) marine insurance;
(4) inland marine insurance;
(5) lightning insurance; or
(6) tornado insurance.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 1, eff. April 1, 2007.