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  S.B. No. 667
 
 
 
 
AN ACT
  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.  [AUTHORITY TO PROVIDE] REINSURANCE.
         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.  [NOTICE OF] DIVIDENDS. (a) A captive
  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