Texas governor Greg Abbott has signed SB 667 into law, enabling captives to pool risk and gain credit for reinsurance to an affiliate.
This new law expands upon the original captive legislation passed in 2013, which allowed pure captives for the first time to be able to domicile in Texas.
"We're pleased with the outcome," said Josh Magden, board president for the Texas Captive Insurance Association (TxCIA).
"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.”
Magden went on to say that the TxCIA was indebted to its general counsel, association management and lobby teams for guiding it through the legislative process.
He continued: “[The] 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 has stated that it plans to hold several webinars and presentations in coming months to educate the business community on opportunities offered through the expanded captive law.
The TxCIA has extended special thanks to its legislative sponsors, representative John Smithee and senator Kevin Eltife, as well as the staff at the Texas Department of Insurance.
