Texas Insurance Code 493.156 – Certain Trusteed Assuming Insurers: Requirements for Reinsurance Contract
(a) A ceding insurer may not be allowed credit under § 493.102(a)(3) for reinsurance ceded to an assuming insurer that is not authorized, accredited, or certified to engage in the business of insurance or reinsurance in this state unless the assuming insurer agrees in the reinsurance contract:
(1) that, if the assuming insurer fails to perform the assuming insurer’s obligations under the reinsurance contract, the assuming insurer, at the request of the ceding insurer, will:
(A) submit to the jurisdiction of a court in any state of the United States;
(B) comply with all requirements necessary to give the court jurisdiction; and
(C) abide by the final decision of that court or, if the court’s decision is appealed, of the appellate court; and
(2) to designate the commissioner or an attorney as an agent for service of process in any action, suit, or proceeding instituted by or on behalf of the ceding insurer.
(b) This section is not intended to conflict with or override a provision in a reinsurance contract that requires the parties to arbitrate the parties’ disputes.
Terms Used In Texas Insurance Code 493.156
- Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
- Contract: A legal written agreement that becomes binding when signed.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Service of process: The service of writs or summonses to the appropriate party.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005