Sec. 884.554. APPROVAL BY DEPARTMENT. (a) A mutual assessment company's board of directors may determine by a majority vote to submit a proposed direct reinsurance agreement to the members of the company. Before the agreement may be submitted to the members, the board must prepare detailed plans for the reinsurance and must submit the agreement to the department.
(b) If the department determines that the proposed direct reinsurance agreement complies with this chapter, the department shall approve the agreement for submission to the members of the company.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.
Structure Texas Statutes
Title 6 - Organization of Insurers and Related Entities
Subtitle E - Mutual and Fraternal Companies and Related Entities
Chapter 884 - Stipulated Premium Insurance Companies
Subchapter L. Direct Reinsurance Agreements With Mutual Assessment Companies
Section 884.552. Authority to Contract
Section 884.553. Reinsurance Agreement
Section 884.554. Approval by Department
Section 884.555. Members Meeting; Notice
Section 884.556. Members Meeting; Procedures
Section 884.557. Submission of Meeting Facts to Department
Section 884.558. Effective Date of Agreement
Section 884.559. Action After Agreement Ratification
Section 884.560. Assumption Certificate