(a) A ceding insurer domiciled in this state may not
take credit for insurance ceded to an insurer that is not authorized
in Texas, accredited in Texas, trusteed in Texas, or certified in
Texas, except as authorized under Insurance Code §493.104.
(b) The funds held by or on behalf of the ceding insurer
must be held as required under Insurance Code §493.104(b) and
must be segregated from other operating accounts and securities invested
by the ceding insurer. The segregated account must clearly acknowledge
ownership by the company on whose annual statement these assets are
listed. The ceding insurer must maintain at all times a subsidiary
ledger detailing by each assuming insurer all transactions pertinent
to each cash account or security held under the respective reinsurance
agreements.
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