On Tuesday, April 18, the Texas House Insurance Committee approved legislation making improvements in the Texas captive insurance law. The new amended bill, H.B. No. 1944, provides for the following.
- Credit for reinsurance ceded to non-affiliated and non-admitted reinsurers that meet the standards of the bill
- The writing of life insurance when part of an employee benefit plan under the Employee Retirement Income Security Act (ERISA)
- Formation and redomestication of captives formed as reciprocal exchanges
- The waiver of actuarial reports under qualifying conditions
- Formation of captive insurer entities at the Secretary of State prior to applying for a Certificate of Authority
- Clarification of existing provisions of the law regarding the use of adjusters and investments
When asked by Captive.com what the next step will be for the bill, Burnie Burner of the Austin, Texas, law firm Mitchell, Williams, Selig, Gates & Woodyard replied, “hopefully the bill will go through the Calendars Committee to the House floor and be passed. The Senate version could be heard as early as today.”
In the coming weeks, Captive.com will keep you updated on the progress of this effort to improve the Texas captive insurance law.