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