Texas 2015 - 84th Regular

Texas Senate Bill SB667 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Eltife S.B. No. 667
2		-	(Smithee)
	1	+	S.B. No. 667
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to reinsurance, distributions, and pooling arrangements
8	6		by captive insurance companies.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. The heading to Section 964.052, Insurance Code,
11	9		is amended to read as follows:
12	10		Sec. 964.052. [AUTHORITY TO PROVIDE] REINSURANCE.
13	11		SECTION 2. Section 964.052, Insurance Code, is amended by
14	12		adding Subsection (e) to read as follows:
15	13		(e) Notwithstanding Section 964.064, a captive insurance
16	14		company, with the commissioner's approval, may accept risks from
17	15		and cede risks to or take credit for reserves on risks ceded to:
18	16		(1) a captive reinsurance pool composed only of other
19	17		captive insurance companies holding a certificate of authority
20	18		under this chapter or a similar law of another jurisdiction; or
21	19		(2) an affiliated captive insurance company holding a
22	20		certificate of authority under this chapter or a similar law of
23	21		another jurisdiction.
24	22		SECTION 3. Section 964.063, Insurance Code, is amended to
25	23		read as follows:
26	24		Sec. 964.063. [NOTICE OF] DIVIDENDS. (a) A captive
27	25		insurance company shall notify the commissioner in writing when
28	26		issuing policyholder dividends.
29	27		(b) A captive insurance company, with the commissioner's
30	28		approval, may issue dividends or distributions to the holders of an
31	29		equity interest in the captive insurance company. The commissioner
32	30		shall adopt rules to implement this subsection.
33	31		SECTION 4. Subchapter B, Chapter 964, Insurance Code, is
34	32		amended by adding Section 964.072 to read as follows:
35	33		Sec. 964.072. APPROVAL OF CAPTIVE REINSURANCE POOLS.
36	34		Before determining whether to approve a captive insurance company's
37	35		participation in a captive reinsurance pool under Section 964.052,
38	36		the commissioner may:
39	37		(1) require the captive insurance company provide to
40	38		the commissioner evidence that the captive reinsurance pool:
41	39		(A) is composed only of other captive insurance
42	40		companies holding a certificate of authority under this chapter or
43	41		a similar law of another jurisdiction; and
44	42		(B) will be able to meet the pool's financial
45	43		obligations; and
46	44		(2) impose any other limitation or requirement on the
47	45		captive insurance company that is necessary and proper to provide
48	46		adequate security for the captive insurance company.
49	47		SECTION 5. This Act takes effect immediately if it receives
50	48		a vote of two-thirds of all the members elected to each house, as
51	49		provided by Section 39, Article III, Texas Constitution. If this
52	50		Act does not receive the vote necessary for immediate effect, this
53	51		Act takes effect September 1, 2015.
	52	+	______________________________ ______________________________
	53	+	President of the Senate Speaker of the House
	54	+	I hereby certify that S.B. No. 667 passed the Senate on
	55	+	April 9, 2015, by the following vote: Yeas 31, Nays 0.
	56	+	______________________________
	57	+	Secretary of the Senate
	58	+	I hereby certify that S.B. No. 667 passed the House on
	59	+	May 21, 2015, by the following vote: Yeas 141, Nays 0, two
	60	+	present not voting.
	61	+	______________________________
	62	+	Chief Clerk of the House
	63	+	Approved:
	64	+	______________________________
	65	+	Date
	66	+	______________________________
	67	+	Governor