Texas § 493.106 CREDIT FOR REINSURANCE: DIRECT PAYMENT ON LIABILITY REQUIRED.

Texas Statutes

§ 493.106 — CREDIT FOR REINSURANCE: DIRECT PAYMENT ON LIABILITY REQUIRED.

Texas § 493.106

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This text of Texas § 493.106 (CREDIT FOR REINSURANCE: DIRECT PAYMENT ON LIABILITY REQUIRED.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 493.106 (2026).

Text

Sec. 493.106. CREDIT FOR REINSURANCE: DIRECT PAYMENT ON LIABILITY REQUIRED.

(a)A ceding insurer may not be given credit for reinsurance ceded, as an asset or as a deduction from liability, in an accounting or financial statement unless the reinsurance is payable by the assuming insurer:

(1)on the liability of the ceding insurer under the contracts reinsured, without diminution because of the ceding insurer's insolvency; and

(2)directly to the ceding insurer or to the ceding insurer's domiciliary liquidator or receiver.

(b)Subsection (a)(2) does not apply if:

(1)the reinsurance contract specifically provides that, if the ceding insurer is insolvent, the reinsurance is payable to a payee other than one described by Subsection (a)(2); or

(2)the assuming insurer, with the direct insured'

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Sec. 493.106. CREDIT FOR REINSURANCE: DIRECT PAYMENT ON LIABILITY REQUIRED. (a) A ceding insurer may not be given credit for reinsurance ceded, as an asset or as a deduction from liability, in an accounting or financial statement unless the reinsurance is payable by the assuming insurer:
(1) on the liability of the ceding insurer under the contracts reinsured, without diminution because of the ceding insurer's insolvency; and
(2) directly to the ceding insurer or to the ceding insurer's domiciliary liquidator or receiver.
(b) Subsection (a)(2) does not apply if:
(1) the reinsurance contract specifically provides that, if the ceding insurer is insolvent, the reinsurance is payable to a payee other than one described by Subsection (a)(2); or
(2) the assuming insurer, with the direct insured's consent, has assumed the ceding insurer's policy obligations to the payee as the assuming insurer's direct obligations to the payee under the policy as a substitute for the ceding insurer's obligations.