Texas Governor Greg Abbott signed Senate Bill (SB) 667 into law on June 15, 2015.
The bill, which enables captives to pool risk and gain credit for reinsurance to an affiliate, expands on the original captive legislation passed in 2013.
"We're pleased with the outcome," said Josh Magden, board president for the Texas Captive Insurance Association. "There was a tremendous amount of work done in a very compressed timeframe. The Association owes a debt of gratitude to many participants, most especially our board members who provided invaluable insight in crafting the language.
“We're also indebted to our general counsel, association management and lobby teams who deftly guided us through the legislative process. TxCIA benefited tremendously from association member and industry support, and we intend to engage new participants in Texas industry as this law expands the scope of what captives can achieve when domiciled in Texas."
The Association plans to hold several webinars and presentations in coming months to educate the business community on opportunities offered through the expanded captive law.
Greg Abbott, Texas, Legislation, North America, Texas Captive Insurance Association