Direct Reinsurance Agreement With Legal Reserve Company

Sec. 884.502. DIRECT REINSURANCE AGREEMENT WITH LEGAL RESERVE COMPANY. (a) A stipulated premium company may enter into a total or partial direct reinsurance agreement with a legal reserve life insurance company authorized to engage in the business of insurance in this state. (b) Before a reinsurance agreement under this section may take effect, it must be: (1) approved by a majority vote of the board of directors of each company; (2) submitted to the department; and (3) approved by the department as complying with Section 884.503 or 884.504, as applicable. Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.