Texas Insurance Code 912.304 – Reinsurance
(a) A county mutual insurance company may reinsure any or all of the company’s risks with another company against any hazard against which the county mutual insurance company is permitted to insure.
(b) The county mutual insurance company may contract for mutual or reciprocal reinsurance with another company on the mutual or cooperative plan subject to the following conditions:
(1) the county mutual insurance company may assume the reinsurance on the risks of the other company only if the other company reinsures the risks of the county mutual insurance company; and
(2) the county mutual insurance company may write or assume the reinsurance only on property that the company is authorized to insure and that is located in this state.
Terms Used In Texas Insurance Code 912.304
- Contract: A legal written agreement that becomes binding when signed.
- Property: means real and personal property. See Texas Government Code 311.005
(c) A county mutual insurance company that reinsures another company’s property is liable for the losses of the other company only as specified in the reinsurance contract. The county mutual insurance company does not become a member or partner of the other company as a result of the reinsurance.
(d) A county mutual insurance company may pay or collect additional assessments or premiums for the purpose of a contract described by Subsection (b).