Texas Insurance Code 862.101 – Fire and Allied Lines of Insurance: Authorized and Required Reinsurance
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(a) In this section, “fire and allied lines of insurance” has the meaning assigned by statute, rules adopted by the commissioner, or lawful custom.
(b) An insurance or reinsurance company that is authorized to write or reinsure fire and allied lines of insurance in this state may reinsure all or any part of a single risk in one or more other solvent insurers.
Terms Used In Texas Insurance Code 862.101
- 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.
- Statute: A law passed by a legislature.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) An insurance company that is incorporated under the laws of the United States or a state of the United States and authorized to write fire and allied lines of insurance in this state may not, unless the excess is reinsured by the company in another solvent insurer, expose itself to any loss or hazard on a single risk in an amount that exceeds 10 percent of the company’s paid-up capital stock and surplus.
(d) An insurance company that is incorporated under the laws of a jurisdiction other than the United States or a state of the United States and authorized to write fire and allied lines of insurance in this state may not, unless the excess is reinsured by the company in another solvent insurer, expose itself to any loss or hazard on a single risk in an amount that exceeds the sum of:
(1) 10 percent of the company’s deposit with the statutory officer in the state through which the company is authorized to do business in the United States; and
(2) 10 percent of the other policyholders’ surplus of the company’s United States branch.
(e) Subsections (c) and (d) do not apply in connection with the writing of insurance for cotton in bales or for grain.
(f) Reinsurance that is required or permitted by this section must comply with:
(1) Subchapter A, Chapter 491; and
(2) Chapter 493.