(a) An insurer and the association must submit to the department the written assumption reinsurance program, including the assumption reinsurance agreement and all necessary documents, including notices and policy forms evidencing generally comparable coverage and premiums, to allow the department to determine that policyholders and the policyholders' agents have the necessary protections.     
      (b) The assumption reinsurance program and assumption reinsurance agreement must comply with Insurance Code Chapter 2210, Subchapter O. The assumption reinsurance agreement must include:      
        (1) the opportunity for the policyholder to opt out of the assumption reinsurance agreement not more than 60 days after the policyholder receives notice of the reinsurance agreement;       
        (2) a transfer of the earned premium on a reinsured policy to a trust account to be held until the expiration of the policyholder opt-out period when the earned premium for the final reinsured policy will be transferred to the insurer;       
        (3) a period of not less than 60 days for the agent of record to accept an appointment or other written agreement with the insurer; and       
        (4) the effective date of the assumption.       
      (c) The insurer and the association must not proceed with the assumption reinsurance program, and it is not effective unless the Commissioner approves the assumption reinsurance program in writing.     
     Source Note:        The provisions of this §5.4307 adopted to be effective December 22, 2015, 40 TexReg 9296; amended to be effective February 6, 2020, 45 TexReg 763