Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
HB 1944 would make a
series of changes to the Insurance Code regarding captive insurance companies
with five provisions to take note of. First, a captive insurance company
would now be permitted to issue life insurance to insure employee benefits that
are subject to the Employee Retirement Income Security Act. Next, a captive
insurance company may cede risks to or take credit for reserves on risks ceded
to a non-affiliated re-insurer. Third, a captive insurance company would
be exempt from the requirement to file an actuarial report with the annual
report if the company has less than $1 million of net written premium or
reinsurance assumed or has been in operation for less than 6 months of the end
of the previous calendar year. Fourth, a captive insurance company would not be
required to use a licensed adjuster to adjust losses. Finally, conditions for
the establishment of captive exchanges would be established.