Texas Insurance Code 493.155 – Reports and Certification
(a) Not later than February 28 of each year, the trustees of the trust shall:
(1) report to the department in writing, showing the balance of the trust and listing the trust’s investments at the end of the preceding year; and
(2) certify the date of termination of the trust, if termination is planned, or certify that the trust will not expire before December 31 of the year of the report.
(b) To enable the commissioner to determine the sufficiency of the trust fund under § 493.102(a)(3) and for purposes of Sections 493.1036(e) and (f), the assuming insurer shall report to the department not later than March 1 of each year information substantially the same as the information required to be reported by an authorized insurer on the National Association of Insurance Commissioners’ Annual Statement form.
Terms Used In Texas Insurance Code 493.155
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Trustee: A person or institution holding and administering property in trust.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) Not later than February 28 of each year, if requested by a beneficiary of the trust fund, an assuming insurer that maintains a trust fund shall provide or make available to the assuming insurer’s United States ceding insurers or those ceding insurers’ assigns and successors in interest the following information:
(1) a copy of the trust instrument and any amendments to the trust instrument relating to the trust fund;
(2) a copy of the assuming insurer’s annual and quarterly financial information, and the insurer’s most recent audited financial statement provided to the commissioner, including any exhibits and schedules;
(3) any financial information provided to the department or commissioner by the assuming insurer, including any exhibits and schedules;
(4) a copy of any annual and quarterly financial information provided to the department or commissioner by the trustee of the trust fund maintained by the assuming insurer, including any exhibits and schedules; and
(5) a copy of the information required to be reported by the trustee under Subsection (a).
(d) If requested by a ceding insurer, the assuming insurer shall provide, in addition to the information under Subsection (c), a certification that:
(1) discloses the financial information provided to the commissioner relating to reinsurance liabilities attributable to the ceding insurer; and
(2) certifies that the amount of security held in trust on behalf of the ceding insurer is at least equal to those amounts as reflected in the report to the department under Subsection (a).
(e) The assuming insurer shall also provide, if requested by the ceding insurer, a certification that the trust, in aggregate:
(1) consists of sufficient assets to support the assuming insurer’s trust obligations under applicable state laws and regulations; and
(2) includes a trusteed surplus of at least $20 million.
(f) An assuming insurer may decline to release trade secrets or commercially sensitive information to a ceding insurer.