We previously reported on the Texas Legislature's passage in 2017 of Senate Bill 1070, which reduced collateral requirements for foreign reinsurers in order for domestic insurers to receive credit for the reinsurance on their financial statements. The provisions of that bill took effect on January 1, 2018.
On March 15, 2018, the Texas Department of Insurance proposed to amend the Texas Administrative Code to implement the changes made by SB 1070. The amendments to §§ 7.601-7.612 and 7.614 implement amendments to existing reinsurance processes, including trust accounts and letters of credit that may affect certified assuming insurers, and clarify filing requirements and reduce the administrative burden and cost of submissions. Several of the amendments adopt revised versions of the NAIC Model Credit for Reinsurance Regulation, although the amendments do not adopt all of the Model Regulations. 28 TAC §§7.601-7.612, 7.614, and 7.621-7.627 (amended June 15, 2018).
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