This subchapter is promulgated and adopted pursuant to the authority provided in the Insurance Code, Articles 1.32, 3.10, 5.75-1, 9.21, and 21.28-A. This subchapter applies to all insurers writing insurance, which includes, but is not limited to, life insurance, accident and health insurance, annuities, and all forms of insurance regulated by the Insurance Code, Chapter 5, including, but not limited to, property and casualty insurance, fire insurance, auto insurance, fidelity, guaranty, and surety bonds, and workers' compensation insurance in this state. This subchapter applies to all insurers authorized to do the business of insurance in this state under the Insurance Code, Chapters 2, 3, 5, 6, 8-19, 21, and 22. The provisions of §§7.601-7.614 of this title (relating to Scope; Definitions; the Insurance Code, Article 3.02, §2(a), Companies--Prohibition against Reinsurance with Nonlicensed Insurers; Reinsurance of Entire Business; Fees; Nonlicensed Insurer May Become Accredited Reinsurer; Nonlicensed Insurer May Become Trusteed Reinsurer; Insurance Ceded to Nonlicensed Insurers; Trust Agreements Qualified under the Insurance Code, Article 3.10, §(d), and Article 5.75-1, §(d); Letter of Credit Qualified under the Insurance Code, Article 3.10, §(d)(3), or Article 5.75-1, §(d)(3); Indemnity Reinsurance Agreements--Required Provisions; Reinsurance Agreements Affected; Reinsurance Ceded to Nonlicensed Reinsurers during the Transitional Period; and Adoption of Forms by Reference) shall not apply to ceding insurers domiciled in another state that regulates reinsurance reserve credit under law, rule, or bulletin substantially similar in substance and effect to Texas law and rules. To pursue this exception, the ceding insurer shall provide upon request to the commissioner of insurance evidence of similarity in the form of statutes, regulations, and interpretation of the standards utilized by the state of domicile. The provisions of this subchapter shall not apply to the reinsurance of all or part of the liability of a policy of title insurance when the assuming insurer is licensed to do business in Texas and the reinsurance is effected by use of a form promulgated by the State Board of Insurance. The board may, pursuant to the Insurance Code, Article 9.19, §D, permit any title insurance company licensed to do business in this state to acquire reinsurance and may consider the provisions of this subchapter, insofar as those provisions apply to the business of title insurance. The sections in this subchapter are supplementary to and cumulative of existing statutes and rules of the State Board of Insurance. In the case of an ambiguity or contradiction between any of the sections in this subchapter and any statute, the provisions of the statute controls.

Source Note:The provisions of this §7.601 adopted to be effective August 16, 1990, 15 TexReg 4435.