Sec. 4053.109. REINSURANCE. (a) A managing general agent may not knowingly cede, arrange, facilitate, or bind an insurer to reinsurance.
(b) Notwithstanding Subsection (a), a managing general agent may bind a facultative reinsurance contract in accordance with an obligatory facultative agreement if the contract with the insurer contains reinsurance underwriting guidelines including, for both assumed and ceded reinsurance:
(1) a list of reinsurers with whom the automatic agreements are in effect;
(2) the coverages and amounts or percentages that may be reinsured; and
(3) commission schedules.
(c) A managing general agent may not commit an insurer to participate in insurance or reinsurance syndicates.
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 7, eff. April 1, 2005.
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