Tex. Ins. Code § 493.104 · Subchapter C. CREDIT FOR REINSURANCE
CREDIT FOR FUNDS SECURING REINSURANCE OBLIGATIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Subject to Subsection (b), any asset or deduction from liability for reinsurance ceded to an assuming insurer that does not meet the requirements of Section 493.102 shall be allowed in an amount that does not exceed the liabilities carried by the ceding insurer and in the amount of funds held by or on behalf of the ceding insurer under a reinsurance contract with the assuming insurer, including funds held in trust for the ceding insurer, as security for the payment of obligations under the contract.
(b) The funds held as security:
(1) must be held in the United States subject to withdrawal solely by and under the exclusive control of the ceding insurer or, in the case of a trust, held in a qualified United States financial institution that has been granted the authority to operate with fiduciary powers; and
(2) may be in the form of:
(A) cash;
(B) securities that are listed by the Securities Valuation Office of the National Association of Insurance Commissioners and qualify as admitted assets;
(C) subject to Section 493.105, a clean, irrevocable, unconditional letter of credit, issued or confirmed by a qualified United States financial institution that has been determined by the commissioner or the Securities Valuation Office of the National Association of Insurance Commissioners to meet the standards of financial condition and standing that are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner; or
(D) another form of security acceptable to the commissioner.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 79 (S.B. 1093), Sec. 2, eff. September 1, 2015.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.493.htm
- Text hash
- sha256 c40c76a10d226d2653dd1b80aeeed85bbe3b41f6a3d15c6faea53ca4c17f9276
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 7 provisions
Provisions in this library whose text cites Tex. Ins. Code § 493.104. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 493.105ACCEPTABILITY OF CERTAIN LETTERS OF CREDIT.Printed as Section 493.104 | Section 493.104(b)(2)(C)
- Tex. Ins. Code § 493.108CREDIT ALLOWED FOR CERTAIN ELIGIBLE ASSUMING INSURERS.Printed as Section 493.104
- Tex. Ins. Code § 841.402DEFINITIONS.Printed as Section 493.104(b)(2)(C)
- Tex. Ins. Code § 841.412MINIMUM AUTHORIZED INVESTMENT REQUIREMENT AFTER CREDIT FOR REINSURANCE; LETTERS OF CREDIT; GUARANTIES.Printed as Section 493.104(b)(2)(C)
- Tex. Ins. Code § 841.413PERMITTED REINSURANCE.Printed as Section 493.104(b)(2)(C)
- Tex. Ins. Code § 912.056CREATION OF LOCAL CHAPTERS AND DISTRICTS.Printed as Section 493.104
- Tex. Ins. Code § 2651.012UNENCUMBERED ASSETS.Printed as Section 493.104(b)(2)(C)
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