SECTION 7.627. Additional NRSRO

(a) In addition to those NRSROs listed in §7.622(a)(4)(C) of this title, the Commissioner may determine that additional NRSROs are acceptable. An applicant must be an NRSRO and demonstrate to the satisfaction of the Commissioner that the applicant's:

(1) rating structure is reliable and suitable for rating the solvency of assuming insurers, including not less than five years' experience in rating insurers engaged primarily in assuming insurance from United States domiciled ceding insurers;

(2) financial strength ratings are based on interactive communication between the NRSRO and the assuming insurer and must not be based solely on publicly available information; and

(3) ratings correlate to the rating structure and security levels shown in Figure: 28 TAC §7.622(b)(1)(A) of this title.

(b) The applicant must submit an application with TDI demonstrating that the applicant meets the requirements listed in subsection (a) of this section. On receipt of the application, TDI will post notice of the application, the application, and instructions on how the public may respond to or comment on the application. The notice will remain posted on the website for at least 30 days before the Commissioner will take final action on the application.

(c) If the Commissioner determines that the applicant qualifies to be an acceptable NRSRO, TDI will, on its website:

(1) list the applicant with other acceptable NRSROs; and

(2) add applicant's rating structures and security table to those shown in Figure: 28 TAC §7.622(b)(1)(A).

(d) The Commissioner may withdraw recognition of an NRSRO that has been determined to be acceptable under this section if the Commissioner determines that the NRSRO no longer meets the requirements of this section.

Source Note: The provisions of this §7.627 adopted to be effective June 19, 2018, 43 TexReg 3888