The Texas legislature has passed the state's new captive bill to allow for non-affiliated reinsurance, reciprocal captive structures.
It has passed both the Senate and the House of Representatives and is now ready for the governor’s signature.
Under the new law, captive insurance companies can provide reinsurance to an insurer covering the operational risks of its affiliates, or risks of a controlled unaffiliated business that the captive insurance company may insure directly under Section 964.051.
In a recent interview, Josh Magden, president of the Texas Captive Insurance Association, encouraged stakeholders to provide their perspectives so that the state can make well-informed decisions about what changes to make to legislation.
Magden said: “We want more specific perspectives, and need that support to articulate the benefit of certain legislative changes.”
