The Texas Department of Insurance has proposed a set of amendments to its regulations concerning captive insurance in order to implement changes passed into law by the Texas legislature in 2015 and 2017. The 2015 legislation allowed the Department to approve dividends and distributions to holders of an equity interests in a captive insurance company, while the 2017 legislation allowed captive insurance companies to be formed as captive exchanges, allowed the Commissioner to waive the actuarial opinion required for captive insurers under certain circumstances, allowed the Secretary of State to form a captive insurer before the Department approves that insurer's formation documents, allowed the Department to approve distributions to policyholders, and provided a procedure for making determinations regarding acceptable qualified jurisdictions and rating agencies for reinsurance transactions.
The proposed regulations establish rules and procedures meant to implement each of these changes.
The Department will be accepting public comments on these proposed regulations through October 22, 2018.
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