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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a captive insurance company to provide |
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reinsurance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 964.052(a), Insurance Code, is amended |
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to read as follows: |
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(a) A captive insurance company may provide reinsurance to |
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an insurer covering the operational risks of the captive insurance |
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company's affiliates, or risks of a controlled unaffiliated |
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business, that the captive insurance company may insure directly |
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under Section 964.051 and: |
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(1) employee benefit plans offered by affiliates; |
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(2) liability insurance an affiliate must maintain as |
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a prerequisite for obtaining a license or permit if the law requires |
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maintenance of the liability insurance; [and] |
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(3) credit life insurance and credit disability |
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insurance offered as a part of, or directly relating to, the |
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operational risks of an affiliate; and |
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(4) workers' compensation insurance and employer |
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liability policies issued to affiliates if the insurer that |
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directly issues workers' compensation insurance and employer's |
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liability policies or its licensed, if required by law, |
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administrator or adjuster: |
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(A) services all claims incurred during the |
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policy period; and |
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(B) complies with all requirements for an insurer |
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under this code, including Chapter 462, and under Title 5, Labor |
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Code. |
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SECTION 2. This Act takes effect September 1, 2017. |