BILL ANALYSIS

 

 

Senate Research Center	H.B. 1187
85R5207 BEE-F	By: Capriglione (Nelson)
	Business & Commerce
	5/10/2017
	Engrossed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Interested parties contend that clarification is needed regarding a captive insurance company's authority to provide reinsurance. H.B. 1187 seeks to address this issue by including credit life insurance and credit disability insurance offered as a part of, or directly relating to, the operational risks of a captive insurance company's affiliate among the types of insurance for which a captive insurance company may provide reinsurance.

 

H.B. 1187 amends current law relating to the authority of a captive insurance company to provide reinsurance.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 964.052(a), Insurance Code, as follows:

 

(a) Authorizes a captive insurance company to provide reinsurance to an insurer covering the operational risks of the captive insurance company's affiliates, or risks of a controlled unaffiliated business, that the captive insurance company is authorized to insure directly under Section 964.051 (Authority to Write Direct Business) and:

 

(1) makes no change to this subdivision;

 

(2) makes a nonsubstantive change;

 

(3) credit life insurance and credit disability insurance offered as a part of, or directly relating to, the operational risks of an affiliate; and

 

(4) redesignates existing Subdivision (3) as Subdivision (4) and makes no further changes to this subdivision.

 

SECTION 2. Effective date: September 1, 2017.