85(R) - 2017
Relating to the authority of a captive insurance company to provide reinsurance.
No fiscal implication to the State is anticipated.
Under current law, a captive insurance company may provide reinsurance to an insurer covering the operational risks of the company's affiliates, or risks of a controlled unaffiliated business. The insurance company may also provide: employee benefit plans offered by affiliates, liability insurance an affiliate must maintain as a prerequisite for obtaining a license or permit, and workers' compensation insurance and employer liability policies. HB 1187 would allow captive insurance companies to also offer credit life insurance and credit disability insurance as a part of the operational risks of an affiliate.
Vote Recommendation Notes
Texas Action supports this bill. HB 1187 upholds our principles of free markets and limited government because it expands the coverage options a captive insurance company may offer.