Texas bill to improve captive law
Texas is on the path to improving its attractiveness as a domicile, with the House Insurance Committee approving legislation which makes amendments to the State's captive insurance law.
Sponsored bu Rep Jim Murphy and Rep Giovanni Capriglione, House Bill 1944 alters a line that says a captive insurance company may no issue life insurance, to exempt this rule for insuring employee benefits that are subject to the Employee Retirement Income Security Act of 1974.
The bill also adda subsection to the Insurance Code to allow captive insurance companies to cede risks to - or take credit for reserves on risks ceded to - a nonaffiliated reinsurer, for example if the reinsurers holds a certification of authority to transact re/insurance in a qualified jursidiction.
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