Texas § IN.841.413 - PERMITTED REINSURANCE
Full text of Texas The Texas Constitution § IN.841.413 — PERMITTED REINSURANCE, with citation guidance and answers to common questions.
§ IN.841.413. PERMITTED REINSURANCE
PERMITTED REINSURANCE. (a) A limited purpose subsidiary life insurance company may only reinsure the risks of a ceding insurer under a reinsurance contract. (b) Unless otherwise approved in advance by the commissioner, a limited purpose subsidiary life insurance company may not assume or retain exposure to reinsurance losses for the company's own account that are not funded by: (1) premium and other amounts payable by the ceding insurer to the limited purpose subsidiary life insurance company under the reinsurance contract, or any return on the investment of the premiums or other amounts; (2) letters of credit that qualify under Section 493.104 (b)(2)(C); or (3) guaranties of a holding company or an affiliated company as provided by Section 841.417 . (c) A limited purpose subsidiary life insurance company may cede risks assumed under a reinsurance contract to one or more reinsurers through the purchase of reinsurance, subject to the prior approval of the commissioner. The commissioner may approve a reinsurance contract under this subsection if the commissioner finds that: (1) the proposed reinsurance complies with Chapter 493 ; (2) the proposed reinsurer has sufficient liquidity, admitted assets, and policyholder surplus to support the liabilities assumed under the reinsurance contract; and (3) the proposed reinsurance contract would not result in a hazardous financial condition for the limited purpose subsidiary life insurance company. (d) A limited purpose subsidiary life insurance company may enter into contracts and conduct other commercial activities related or incidental to, and necessary to fulfill the purposes of, a reinsurance contract. Added by Acts 2011, 82nd Leg., R.S., Ch. 1173 (H.B. 3161 ), Sec. 1, eff. June 17, 2011. Amended by: Acts 2017, 85th Leg., R.S., Ch. 594 (S.B. 1070 ), Sec. 3.08, eff. September 1, 2017.
Frequently Asked Questions About Texas § IN.841.413
What does The Texas Constitution § IN.841.413 cover?
Section IN.841.413 ("PERMITTED REINSURANCE") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § IN.841.413?
A common citation format is "The Texas Constitution § IN.841.413" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § IN.841.413 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.