Tex. Ins. Code Section 4053.109
Reinsurance

(a)

A managing general agent may not knowingly cede, arrange, facilitate, or bind an insurer to reinsurance.

(b)

Notwithstanding Subsection (a), a managing general agent may bind a facultative reinsurance contract in accordance with an obligatory facultative agreement if the contract with the insurer contains reinsurance underwriting guidelines including, for both assumed and ceded reinsurance:

(1)

a list of reinsurers with whom the automatic agreements are in effect;

(2)

the coverages and amounts or percentages that may be reinsured; and

(3)

commission schedules.

(c)

A managing general agent may not commit an insurer to participate in insurance or reinsurance syndicates.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.

Source: Section 4053.109 — Reinsurance, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­4053.­htm#4053.­109 (accessed May 18, 2024).

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Accessed:
May 18, 2024

§ 4053.109’s source at texas​.gov