| (1) If an NAIC accredited jurisdiction has determined
that an assuming insurer meets the conditions in subsection (c) of
this section, the Commissioner may defer to that jurisdiction's determination,
and add the assuming insurer to the Commissioner's list of assuming
insurers. The Commissioner may accept financial documentation filed
with another NAIC accredited jurisdiction or the NAIC to satisfy the
requirements of subsection (c) of this section.
(2) When an assuming insurer requests that the Commissioner
defer to another NAIC accredited jurisdiction's determination, the
assuming insurer must submit a properly executed Form RJ-1 adopted
by reference in §7.614 of this title and any additional information
the Commissioner requires. If TDI receives a request, TDI will notify
other states through the NAIC committee process and provide relevant
information about the Commissioner's eligibility determination.
(f) If the Commissioner determines that an assuming
insurer no longer meets any requirement under this section, the Commissioner
may revoke or suspend the eligibility of the assuming insurer from
the Commissioner's list of eligible assuming insurers.
(1) While an assuming insurer's eligibility is suspended,
the assuming reinsurer's reinsurance agreements issued, amended, or
renewed after the effective date of the suspension do not qualify
for credit except to the extent that the assuming insurer's obligations
under the agreements are secured in accordance with Insurance Code §493.104
and §7.608(b) of this title (relating to Insurance Ceded to Assuming
Insurers not Authorized in Texas, or Accredited, Trusteed, or Certified
under this Subchapter), §7.610 of this title (relating to Letter
of Credit Requirements), and §7.611 of this title (relating to
Indemnity Reinsurance Agreements--Required Provisions).
(2) If an assuming insurer's eligibility is revoked,
no credit for the assuming reinsurer's reinsurance, including reinsurance
agreements entered into before the date of revocation, may be granted
after the effective date of the revocation except to the extent that
the assuming insurer's obligations under the agreements are secured
in a form acceptable to the Commissioner and consistent with Insurance
Code §493.104 and §§7.608(b), 7.610, and 7.611 of this
title.
(g) Before denying statement credit, imposing a requirement
to post security under subsection (f) of this section, or adopting
any similar requirement that has substantially the same regulatory
impact as security, the Commissioner shall:
(1) communicate with the ceding insurer, the assuming
insurer, and the assuming insurer's supervisory authority that the
assuming insurer no longer satisfies one of the conditions in subsection
(c) of this section;
(2) allow the assuming insurer 30 days after the initial
communication under paragraph (1) of this subsection to submit a plan
to remedy the defect, and 90 days after that communication to remedy
the defect, except in exceptional circumstances in which a shorter
period is necessary for policyholder and other consumer protection;
(3) after the expiration of the 90-day period or, if
applicable, the shorter period for exceptional circumstances described
by paragraph (2) of this subsection, if the Commissioner determines
that the assuming insurer took no or insufficient action to remedy
the defect, the Commissioner may impose any requirement in this subsection;
and
(4) provide a written explanation to the assuming insurer
of any requirement in this subsection.
(h) If a ceding insurer is subject to a legal process
of rehabilitation, liquidation, or conservation, the ceding insurer
or its representative may seek and, if determined appropriate by the
court in which the proceedings are pending, obtain an order requiring
that the assuming insurer post security for all outstanding liabilities.
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