Reinsurance

Sec. 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.