Texas Insurance Code

§ 964.056 — CAPITAL AND SURPLUS OR EQUIVALENT REQUIREMENTS

IN § 964.056Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part H. OTHER ENTITIES · Ch. 964. CAPTIVE INSURANCE COMPANIES · Art. B. CAPTIVE INSURANCE COMPANIES

Statute text

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(a)The department may not issue a certificate of authority to a captive insurance company unless the company possesses and maintains unencumbered capital and surplus, or the equivalent, in an amount determined by the commissioner after considering:

(1)the amount of premium written by the captive insurance company;

(2)the characteristics of the assets held by the captive insurance company;

(3)the terms of reinsurance arrangements entered into by the captive insurance company;

(4)the type of business covered in policies issued by the captive insurance company;

(5)the underwriting practices and procedures of the captive insurance company; and

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Legislative history

Acts 2017, 85th Leg., R.S., Ch. 1050 (H.B. 1944), Sec. 1.06, eff. June 15, 2017.