Texas has put forward a new captive bill, HB 1187, proposing the introduction of non-affiliated reinsurance, reciprocal captive structures in the state.
Giovanni Capriglione, a member of the Texas House of Representatives, filed the new captive bill on 19 January.
Under the proposed changes, a captive insurance company would be able to 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 (TxCIA), said Texas wants more perspectives so that it 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.”
The proposed date for the act to become effective is 1 September.
The bill is awaiting committee review.
