H.B. No. 1187
AN ACT
relating to the authority of a captive insurance company to provide
reinsurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 964.052(a), Insurance Code, is amended
to read as follows:
(a) A captive insurance company may 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 may insure directly
under Section 964.051 and:
(1) employee benefit plans offered by affiliates;
(2) liability insurance an affiliate must maintain as
a prerequisite for obtaining a license or permit if the law requires
maintenance of the liability insurance; [and]
(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) workers' compensation insurance and employer
liability policies issued to affiliates if the insurer that
directly issues workers' compensation insurance and employer's
liability policies or its licensed, if required by law,
administrator or adjuster:
(A) services all claims incurred during the
policy period; and
(B) complies with all requirements for an insurer
under this code, including Chapter 462, and under Title 5, Labor
Code.
SECTION 2. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1187 was passed by the House on April
26, 2017, by the following vote: Yeas 147, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1187 was passed by the Senate on May
19, 2017, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor