Tex. Ins. Code § 493.106 · Subchapter C. CREDIT FOR REINSURANCE
CREDIT FOR REINSURANCE: DIRECT PAYMENT ON LIABILITY REQUIRED.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A ceding insurer may not be given credit for reinsurance ceded, as an asset or as a deduction from liability, in an accounting or financial statement unless the reinsurance is payable by the assuming insurer:
(1) on the liability of the ceding insurer under the contracts reinsured, without diminution because of the ceding insurer's insolvency; and
(2) directly to the ceding insurer or to the ceding insurer's domiciliary liquidator or receiver.
(b) Subsection (a)(2) does not apply if:
(1) the reinsurance contract specifically provides that, if the ceding insurer is insolvent, the reinsurance is payable to a payee other than one described by Subsection (a)(2); or
(2) the assuming insurer, with the direct insured's consent, has assumed the ceding insurer's policy obligations to the payee as the assuming insurer's direct obligations to the payee under the policy as a substitute for the ceding insurer's obligations.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
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 b97c865e486f02ea73072bcffbce79186f1deb99d86ea12c4322ecd3d811a0b5
- 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
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.