2005 Texas Insurance Code CHAPTER 491. GENERAL REINSURANCE REQUIREMENTS

INSURANCE CODE

SUBTITLE F. REINSURANCE

CHAPTER 491. GENERAL REINSURANCE REQUIREMENTS

SUBCHAPTER A. REINSURANCE


	§ 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, § 1, eff. April 1, 2007.           


	§ 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, § 1, eff. April 1, 2007.           


	§ 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, § 1, eff. April 1, 2007.           


	§ 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, § 1, eff. April 1, 2007.           


	§ 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, § 1, eff. April 1, 2007.           

SUBCHAPTER B. COMPUTATION OF REINSURANCE RESERVE


	§ 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, § 1, eff. April 1, 2007.           


	§ 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, § 1, eff. April 1, 2007.