Bill Text: TX SB667 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to reinsurance, distributions, and pooling arrangements by captive insurance companies.
Sponsorship: Partisan Bill (Republican 2)
Status: (Passed) 2015-06-15 - Effective immediately [SB667 Detail]
Download: Texas-2015-SB667-Enrolled.html
| S.B. No. 667 | ||
|
|
||
| relating to reinsurance, distributions, and pooling arrangements | ||
| by captive insurance companies. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The heading to Section 964.052, Insurance Code, | ||
| is amended to read as follows: | ||
| Sec. 964.052. [ |
||
| SECTION 2. Section 964.052, Insurance Code, is amended by | ||
| adding Subsection (e) to read as follows: | ||
| (e) Notwithstanding Section 964.064, a captive insurance | ||
| company, with the commissioner's approval, may accept risks from | ||
| and cede risks to or take credit for reserves on risks ceded to: | ||
| (1) a captive reinsurance pool composed only of other | ||
| captive insurance companies holding a certificate of authority | ||
| under this chapter or a similar law of another jurisdiction; or | ||
| (2) an affiliated captive insurance company holding a | ||
| certificate of authority under this chapter or a similar law of | ||
| another jurisdiction. | ||
| SECTION 3. Section 964.063, Insurance Code, is amended to | ||
| read as follows: | ||
| Sec. 964.063. [ |
||
| insurance company shall notify the commissioner in writing when | ||
| issuing policyholder dividends. | ||
| (b) A captive insurance company, with the commissioner's | ||
| approval, may issue dividends or distributions to the holders of an | ||
| equity interest in the captive insurance company. The commissioner | ||
| shall adopt rules to implement this subsection. | ||
| SECTION 4. Subchapter B, Chapter 964, Insurance Code, is | ||
| amended by adding Section 964.072 to read as follows: | ||
| Sec. 964.072. APPROVAL OF CAPTIVE REINSURANCE POOLS. | ||
| Before determining whether to approve a captive insurance company's | ||
| participation in a captive reinsurance pool under Section 964.052, | ||
| the commissioner may: | ||
| (1) require the captive insurance company provide to | ||
| the commissioner evidence that the captive reinsurance pool: | ||
| (A) is composed only of other captive insurance | ||
| companies holding a certificate of authority under this chapter or | ||
| a similar law of another jurisdiction; and | ||
| (B) will be able to meet the pool's financial | ||
| obligations; and | ||
| (2) impose any other limitation or requirement on the | ||
| captive insurance company that is necessary and proper to provide | ||
| adequate security for the captive insurance company. | ||
| SECTION 5. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2015. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 667 passed the Senate on | ||
| April 9, 2015, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 667 passed the House on | ||
| May 21, 2015, by the following vote: Yeas 141, Nays 0, two | ||
| present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
