(a) An assuming insurer authorized by its state of domicile to assume the kind or kinds of insurance ceded to it, but which is not authorized to transact the business of insurance in this state, may apply for accreditation and such assuming insurer may be referred to as the "applicant" where appropriate in this section. A ceding insurer which cedes business to an accredited assuming insurer may receive the same credit for reinsurance as either an asset or a deduction from liability that the ceding insurer would be entitled to receive from ceding to an authorized assuming insurer.     
      (b) To apply for accreditation, the applicant must submit to TDI the following:      
        (1) applicant information, including the applicant's:                  (A) full name;                   (B) physical address for its principal place of business;                   (C) mailing address;                   (D) NAIC number, United States federal tax identification number, and International Securities Identification Number, as applicable; and                   (E) contact individual's name, phone number, and email;         
        (2) a list of states where the applicant currently transacts business;       
        (3) a list of all lines and classifications of insurance business the applicant is authorized to insure or reinsure;       
        (4) the most recent financial statement the applicant submitted to its state of domicile;       
        (5) a copy of the applicant's certificate or letter of authority or of compliance issued by the state of domicile; and       
        (6) Form AR-1, signed by the applicant's president or chief executive officer, which submits the assuming insurer to both this state's jurisdiction and to this state's right to examine the applicant's books and records.       
      (c) Accreditation will not be granted by the Commissioner until the applicant has submitted all information and documents required under subsection (b) of this section, and has demonstrated to the satisfaction of the Commissioner that the applicant qualifies for accreditation under Insurance Code Chapter 493 and this subchapter.     
      (d) To maintain accreditation, the accredited assuming insurer must submit to TDI:      
        (1) annually on or before March 1 of each year, an annual financial statement, as filed with the insurance regulator of the accredited assuming insurer's state of domicile; and       
        (2) quarterly on or before March 1, May 15, August 15, and November 15 of each year, a listing of ceding insurers with whom reinsurance agreements have been entered during that calendar quarter, including the complete name and address of each ceding insurer.       
      (e) Renewal of accreditation will occur annually, subject to continuing compliance with Insurance Code Chapter 493 and this subchapter.     
      (f) As provided in Insurance Code §493.1038, the Commissioner may suspend or revoke an assuming insurer's accreditation after notice and opportunity for hearing.     
      (g) The Commissioner may allow up to 90 days for an order suspending or revoking an assuming insurer's accreditation to become effective. No credit will be allowed a ceding insurer with respect to reinsurance ceded after the effective date an assuming insurer's accreditation has been suspended or revoked, except as provided under Insurance Code §493.1038. TDI will maintain a list of accredited assuming insurers on the TDI website. The assuming insurer must notify all affected ceding insurers at the time an order is entered that the assuming insurer's accreditation is withdrawn, suspended, or revoked.     
     Source Note:        The provisions of this §7.606 adopted to be effective August 16, 1990, 15 TexReg 4435; amended to be effective September 30, 1993, 18 TexReg 6329; amended to be effective June 19, 2018, 43 TexReg 3888