| (a) An assuming insurer authorized by its state of
domicile to assume the kind or kinds of insurance ceded to it, but
which is not authorized to transact the business of insurance in this
state, may apply for accreditation and such assuming insurer may be
referred to as the "applicant" where appropriate in this section.
A ceding insurer which cedes business to an accredited assuming insurer
may receive the same credit for reinsurance as either an asset or
a deduction from liability that the ceding insurer would be entitled
to receive from ceding to an authorized assuming insurer.
(b) To apply for accreditation, the applicant must
submit to TDI the following:
(1) applicant information, including the applicant's:
(A) full name;
(B) physical address for its principal place of business;
(C) mailing address;
(D) NAIC number, United States federal tax identification
number, and International Securities Identification Number, as applicable;
and
(E) contact individual's name, phone number, and email;
(2) a list of states where the applicant currently
transacts business;
(3) a list of all lines and classifications of insurance
business the applicant is authorized to insure or reinsure;
(4) the most recent financial statement the applicant
submitted to its state of domicile;
(5) a copy of the applicant's certificate or letter
of authority or of compliance issued by the state of domicile; and
(6) Form AR-1, signed by the applicant's president
or chief executive officer, which submits the assuming insurer to
both this state's jurisdiction and to this state's right to examine
the applicant's books and records.
(c) Accreditation will not be granted by the Commissioner
until the applicant has submitted all information and documents required
under subsection (b) of this section, and has demonstrated to the
satisfaction of the Commissioner that the applicant qualifies for
accreditation under Insurance Code Chapter 493 and this subchapter.
(d) To maintain accreditation, the accredited assuming
insurer must submit to TDI:
(1) annually on or before March 1 of each year, an
annual financial statement, as filed with the insurance regulator
of the accredited assuming insurer's state of domicile; and
(2) quarterly on or before March 1, May 15, August
15, and November 15 of each year, a listing of ceding insurers with
whom reinsurance agreements have been entered during that calendar
quarter, including the complete name and address of each ceding insurer.
(e) Renewal of accreditation will occur annually, subject
to continuing compliance with Insurance Code Chapter 493 and this
subchapter.
(f) As provided in Insurance Code §493.1038, the
Commissioner may suspend or revoke an assuming insurer's accreditation
after notice and opportunity for hearing.
(g) The Commissioner may allow up to 90 days for an
order suspending or revoking an assuming insurer's accreditation to
become effective. No credit will be allowed a ceding insurer with
respect to reinsurance ceded after the effective date an assuming
insurer's accreditation has been suspended or revoked, except as provided
under Insurance Code §493.1038. TDI will maintain a list of accredited
assuming insurers on the TDI website. The assuming insurer must notify
all affected ceding insurers at the time an order is entered that
the assuming insurer's accreditation is withdrawn, suspended, or revoked.
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| Source Note: The provisions of this §7.606 adopted to be effective August 16, 1990, 15 TexReg 4435; amended to be effective September 30, 1993, 18 TexReg 6329; amended to be effective June 19, 2018, 43 TexReg 3888 |
