The following words and terms, when used in this subchapter,
have the following meanings, unless the context clearly indicates
otherwise.
(1) Assuming insurer--An insurer as defined in Insurance
Code §493.001. The term includes an insurer that assumes:
(A) the insurance risk of loss of the ceding insurer
under the ceding insurer's indemnity reinsurance agreement, or
(B) the policy obligations of the ceding insurer under
an assumption reinsurance agreement.
(2) Assumption reinsurance--A reinsurance agreement
under which the assuming insurer assumes in writing the direct policy
obligations of the ceding insurer in substitution for the obligations
of the ceding insurer.
(3) Ceding insurer--The insurer that transfers an insurance
risk of loss or part of an insurance risk of loss to an assuming insurer
pursuant to a reinsurance agreement.
(4) Commissioner--Texas Commissioner of Insurance.
(5) GAAP--United States Generally Accepted Accounting
Principles.
(6) Indemnity reinsurance--A reinsurance agreement
that transfers an insurance risk of loss between insurers for a consideration
commensurate with the risk transferred and under which an assuming
insurer indemnifies a ceding insurer against all or part of the insurance
risk of loss that the ceding insurer may sustain under the insurance
policy or policies that the ceding insurer has issued or assumed.
(7) Insurer--A person legally organized in and authorized
by its domiciliary jurisdiction to do the business of insurance, including
those types of entities listed in Insurance Code §493.002, a
title insurer operating under Insurance Code Title 11, or a domestic
surplus lines insurance company operating under Insurance Code Chapter
981.
(8) NAIC--National Association of Insurance Commissioners.
(9) Nationally recognized statistical rating organization
(NRSRO)--A credit rating agency currently registered as such with
the United States Securities and Exchange Commission to issue credit
ratings for insurance companies.
(10) Person--An individual, corporation, partnership,
or other legal entity.
(11) Qualified United States financial institution--Those
institutions as defined in the Insurance Code §493.001.
(12) Reinsurance agreement--A written contract that
transfers an insurance risk of loss between insurers for a consideration
commensurate with the risk transferred.
(13) Surplus as regards policyholders--The excess of
net admitted assets over the sum of total liabilities.
(14) TDI--Texas Department of Insurance.
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