Section 884.502 - Direct Reinsurance Agreement With Legal Reserve Company(a) A stipulated premium company may enter into a total or partial direct reinsurance agreement with a legal reserve life insurance company authorized to engage in the business of insurance in this state.(b) Before a reinsurance agreement under this section may take effect, it must be:(1) approved by a majority vote of the board of directors of each company;(2) submitted to the department; and(3) approved by the department as complying with Section 884.503 or 884.504, as applicable.Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. 6/1/2003.