BILL ANALYSIS Senate Research Center H.B. 1187 85R5207 BEE-F By: Capriglione (Nelson) Business & Commerce 5/10/2017 Engrossed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Interested parties contend that clarification is needed regarding a captive insurance company's authority to provide reinsurance. H.B. 1187 seeks to address this issue by including credit life insurance and credit disability insurance offered as a part of, or directly relating to, the operational risks of a captive insurance company's affiliate among the types of insurance for which a captive insurance company may provide reinsurance. H.B. 1187 amends current law relating to the authority of a captive insurance company to provide reinsurance. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 964.052(a), Insurance Code, as follows: (a) Authorizes a captive insurance company to provide reinsurance to an insurer covering the operational risks of the captive insurance company's affiliates, or risks of a controlled unaffiliated business, that the captive insurance company is authorized to insure directly under Section 964.051 (Authority to Write Direct Business) and: (1) makes no change to this subdivision; (2) makes a nonsubstantive change; (3) credit life insurance and credit disability insurance offered as a part of, or directly relating to, the operational risks of an affiliate; and (4) redesignates existing Subdivision (3) as Subdivision (4) and makes no further changes to this subdivision. SECTION 2. Effective date: September 1, 2017.
BILL ANALYSIS
Senate Research Center H.B. 1187
85R5207 BEE-F By: Capriglione (Nelson)
Business & Commerce
5/10/2017
Engrossed
Senate Research Center
H.B. 1187
85R5207 BEE-F
By: Capriglione (Nelson)
Business & Commerce
5/10/2017
Engrossed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Interested parties contend that clarification is needed regarding a captive insurance company's authority to provide reinsurance. H.B. 1187 seeks to address this issue by including credit life insurance and credit disability insurance offered as a part of, or directly relating to, the operational risks of a captive insurance company's affiliate among the types of insurance for which a captive insurance company may provide reinsurance.
H.B. 1187 amends current law relating to the authority of a captive insurance company to provide reinsurance.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 964.052(a), Insurance Code, as follows:
(a) Authorizes a captive insurance company to provide reinsurance to an insurer covering the operational risks of the captive insurance company's affiliates, or risks of a controlled unaffiliated business, that the captive insurance company is authorized to insure directly under Section 964.051 (Authority to Write Direct Business) and:
(1) makes no change to this subdivision;
(2) makes a nonsubstantive change;
(3) credit life insurance and credit disability insurance offered as a part of, or directly relating to, the operational risks of an affiliate; and
(4) redesignates existing Subdivision (3) as Subdivision (4) and makes no further changes to this subdivision.
SECTION 2. Effective date: September 1, 2017.