1-1 AN ACT
1-2 relating to regulation of nonadmitted captive insurance companies.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 101.053(b), Insurance Code, is amended to
1-5 read as follows:
1-6 (b) Sections 101.051 and 101.052 do not apply to:
1-7 (1) the lawful transaction of surplus lines insurance
1-8 under Article 1.14-2;
1-9 (2) the lawful transaction of reinsurance by insurers;
1-10 (3) a transaction in this state that:
1-11 (A) involves a policy that:
1-12 (i) is lawfully solicited, written, and
1-13 delivered outside this state; and
1-14 (ii) covers, at the time the policy is
1-15 issued, only subjects of insurance that are not resident, located,
1-16 or expressly to be performed in this state; and
1-17 (B) takes place after the policy is issued;
1-18 (4) a transaction:
1-19 (A) that involves an insurance contract
1-20 independently procured through negotiations occurring entirely
1-21 outside this state;
1-22 (B) that is reported; and
1-23 (C) on which premium tax is paid in accordance
1-24 with this chapter;
2-1 (5) a transaction in this state that:
2-2 (A) involves group life, health, or accident
2-3 insurance, other than credit insurance, and group annuities in
2-4 which the master policy for the group was lawfully issued and
2-5 delivered in a state in which the insurer or other person was
2-6 authorized to do insurance business; and
2-7 (B) is authorized by a statute of this state;
2-8 (6) an [a management or accounting] activity in this
2-9 state by or on the sole behalf of a nonadmitted captive insurance
2-10 company that insures solely [directors' and officers' liability
2-11 insurance for]:
2-12 (A) directors' and officers' liability insurance
2-13 for the directors and officers of the company's parent and
2-14 affiliated companies;
2-15 (B) the risks of the company's parent and
2-16 affiliated companies; or
2-17 (C) both the individuals and entities described
2-18 by Paragraphs (A) and (B);
2-19 (7) the issuance of a qualified charitable gift
2-20 annuity under Chapter 102; or
2-21 (8) a lawful transaction by a servicing company of the
2-22 Texas workers' compensation employers' rejected risk fund under
2-23 Section 4.08, Article 5.76-2, as that article existed before its
2-24 repeal.
2-25 SECTION 2. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1703 was passed by the House on April
20, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1703 was passed by the Senate on May
15, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not
voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor