This month Texas Governor Greg Abbott has signed two pieces of recent legislation into law which expand Texas’s growing captive insurance market.
First, Senate Bill 667 amends Chapter 964 of the Texas Insurance Code to permit Texas captive insurance companies to pool risk with other affiliated captives subject to approval by the Texas Department of Insurance (“TDI”). The new law further authorizes a Texas captive insurance company to accept risks from, cede risks to, or take credit for reserves on risks ceded to certain captive reinsurance pools, subject to approval by TDI. The law also clarifies requirements for payment of dividends to captive owners, and requires TDI to adopt rules on that subject.
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