28 Tex. Admin. Code § 5.2006 - Reinsurance
Pursuant to Insurance Code § 2203.151(a)(3) and (4), the Texas Medical Liability Insurance Underwriting Association may cede and purchase reinsurance. The purpose of this section is to implement Insurance Code § 2203.151(a)(3) and (4).
(1) The association may develop a reinsurance
program that will provide for the purchase of reinsurance and that will
maintain the purpose of the association to provide medical liability insurance
and general liability insurance on a self-supporting basis.
(2) A reinsurance program is subject to prior
approval by the Commissioner, and such prior approval must be obtained before
implementation of the reinsurance program. The program must include, but is not
limited to, the proposed reinsurance program structure and terms, including the
reinsurance proposal and proposed reinsurance contract terms and conditions;
cost of the proposed reinsurance program; the recommended percentage of
reinsured business to be assumed by each individual reinsurer; a summary of the
financial condition of each recommended reinsurer; the association's costs to
administer the reinsurance program; compliance with Subchapter F of Chapter 7
of this title (relating to Reinsurance), to the extent that provisions do not
conflict with this section or Chapter 2203 of the Insurance Code, or unless
such provisions are waived by the Commissioner ; and any other information the
Commissioner deems necessary to enable the Commissioner to determine whether to
approve or disapprove the reinsurance program. The association must submit to
the Commissioner, no later than 90 days before expiration of the reinsurance
contract, the proposed renewal reinsurance program or a statement of the
reasons why a reinsurance program is no longer necessary.
(3) The association must submit written
notice of any amendment to any existing reinsurance contract to the
Commissioner at least 60 days prior to the effective date of the proposed
amendment . The notice must include an explanation of the reason for the
amendment and a copy of the draft amendment . The amendment will be deemed
approved by the Commissioner unless within 60 days following the submission of
the written notice the Commissioner disapproves the amendment.
Notes
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