By: Capriglione (Senate Sponsor - Nelson) H.B. No. 1187
(In the Senate - Received from the House April 27, 2017;
May 4, 2017, read first time and referred to Committee on Business &
Commerce; May 15, 2017, reported favorably by the following vote:
Yeas 8, Nays 0; May 15, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
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.
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