Sec. 493.154. TERMS OF TRUST. (a) The trust instrument must provide that contested claims are valid and enforceable on the final order of any court in the United States.
(b) The trust must vest legal title to the trust's assets in the trustees of the trust for:
(1) the trust's United States policyholders and ceding insurers; and
(2) the policyholders' and ceding insurers' assigns and successors in interest.
(c) The trust must remain in effect as long as the assuming insurer has outstanding obligations under a reinsurance contract subject to the trust.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Structure Texas Statutes
Title 4 - Regulation of Solvency
Chapter 493 - Authorized Reinsurance; Credit and Accounting
Subchapter D. Requirements for Trust Credit Allowance
Section 493.151. Applicability of Subchapter
Section 493.152. Composition of Trust
Section 493.153. Form of Trust
Section 493.154. Terms of Trust
Section 493.155. Reports and Certification
Section 493.156. Certain Trusteed Assuming Insurers: Requirements for Reinsurance Contract
Section 493.1561. Certain Trusteed Assuming Reinsurers; Requirements for Trust Agreement