SECTION 7.626. Section Mandatory Funding Clause

In addition to the clauses required under Insurance Code Chapter 493 and this subchapter, a ceding insurer may not enter into or renew a reinsurance agreement with a certified assuming insurer under this subchapter, unless the reinsurance agreement includes a funding clause that requires the certified assuming insurer to provide and maintain security in an amount sufficient to avoid the imposition of any financial statement penalty on the ceding insurer for reinsurance ceded to the certified assuming insurer.

Source Note: The provisions of this §7.626 adopted to be effective June 19, 2018, 43 TexReg 3888