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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 7CORPORATE AND FINANCIAL REGULATION
SUBCHAPTER FREINSURANCE
RULE §7.602Definitions

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

  (1) Anniversary--The annual recurrence of the date of inception of the reinsurance agreement.

  (2) Assuming insurer (Reinsurer)--The insurer who, under a reinsurance agreement (contract of reinsurance), incurs an obligation to the ceding insurer which is contingent upon the incurring of liability or loss by the ceding insurer under its contracts of insurance or reinsurance. Assuming insurer includes an insurer who assumes the policy obligations of the ceding insurer as the assuming insurer's direct obligations under those policies and in substitution for the obligations of the ceding insurer.

  (3) Assumption reinsurance--A reinsurance transaction whereby the assuming insurer (reinsurer) assumes in writing the direct policy obligations of the ceding insurer in substitution for the obligations of the ceding insurer.

  (4) Ceding insurer--The insurer or reinsurer which has transferred an insurance risk or part of an insurance risk to a reinsurer pursuant to a reinsurance agreement.

  (5) Indemnity reinsurance--A written contract which transfers an insurance risk of loss between insurers for a consideration and indemnifies a ceding insurer against all or part of the loss which the latter may sustain under the insurance policy or policies it has issued or assumed.

  (6) Insurer--A person or business entity legally organized in and authorized by its domiciliary jurisdiction to do the business of insurance.

  (7) Qualified United States financial institution--Those institutions as defined in the Insurance Code, Article 3.10, §(e), and Article 5.75-1, §(e).

  (8) Reinsurance--A written contract which transfers an insurance risk of loss between insurers for a consideration commensurate with the risk transferred and indemnifies a ceding insurer against all or part of the loss which the latter may sustain under the insurance policy or policies it has issued or assumed.

  (9) Surplus as regards policyholders--The excess of net admitted assets over the sum of total liabilities.


Source Note: The provisions of this §7.602 adopted to be effective August 16, 1990, 15 TexReg 4435.

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