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Senate Bill 1070 |
Senate Author: Hancock |
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Effective: 9-1-17 |
House Sponsor: Frullo |
Senate Bill 1070, the Mattax Act, amends the Insurance Code to apply statutory provisions relating to reinsurance for property and casualty insurers to all life, health, and accident insurance companies regulated by the Texas Department of Insurance and to health maintenance organizations operating under the Texas Health Maintenance Organization Act. The bill repeals provisions relating to reinsurance for life, health, and accident insurance companies and related entities.
Senate Bill 1070 requires credit to be allowed when reinsurance is ceded to an assuming insurer that is certified by the commissioner of insurance as a reinsurer in Texas and that secures its obligations in accordance with the requirements set out by the bill. The bill, among other provisions, prescribes the eligibility requirements for certification, which include certain financial requirements and a requirement to be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction; establishes a process for the development of a list of qualified jurisdictions for that purpose; sets out requirements for certified reinsurers; and establishes procedures for the suspension or revocation of a reinsurer's accreditation or certification or the placement of a reinsurer's certification on inactive status. The bill requires a ceding insurer to take certain actions relating to concentration risk and revises the requirements for a trust that is used to qualify for a reinsurance credit and for the assuming insurer that maintains the trust fund.