Texas Captive Insurance Association Supports Bill to Advance Captives in Texas
This session, legislation will be filed at the request of the Texas Captive Insurance Association (TxCIA) to expand the provisions of SB 734 that passed in 2013 authorizing captive insurance in Texas for the first time.
The bill will have three key provisions. First, it will add reinsurance pooling as an option for risk sharing to allow captives to introduce third party risk to insure deductibility of premium. Secondly, it will provide discretion to insurance regulators (Texas Department of Insurance, "TDI") in determining when credit for reinsurance will be granted. Finally, the bill will require notice be given to TDI when a captive declares stockholder dividends. Currently the law allows for policyholder dividends and while in many cases the policyholders and shareholders are the same entity, amending the law to recognize shareholder dividends recognizes the ownership rights and expectations of shareholder's return on investment.
The TxCIA is also writing bill language on two other issues of interest...CLICK HERE TO READ MORE.
By Bob Kamm and Jocelyn Dabeau, TxCIA Legislative Team
Learn more about the TxCIA Annual Conference legislative agenda at this year's annual conference!
CLICK HERE to see this year's full conference schedule.
REGISTER TODAY FOR THE TxCIA ANNUAL CONFERENCE
Texas Captive Insurance Company Maintenance
Tax Information Update
The Texas Department of Insurance has prepared a tool to assist Texas Captive Insurance Companies in determining the proper maintenance tax rate for their 2014 written premium. The tool can be found on the Texas Department of Insurance's captive webpage, and is titled 2014 Captive Maintenance Tax Information. The purpose of the tool is to match the captive's lines of authority to the applicable maintenance tax rate.
The Texas Comptroller of Public Accounts has prepared an Insurance Tax Bulletin which lists the maintenance tax rates for 2014 premiums. The maintenance tax bulletin is available on the Texas Comptroller's website, and is titled Insurance Maintenance Tax Rates and Assessments on 2014 Premiums.
Any questions should be directed to firstname.lastname@example.org.
To Learn More about TxCIA Membership Benefits and Reduce Your Costs for the TxCIA Annual Conference, CLICK HERE and Join Today!
The Texas Captive Insurance Association exists to serve as an information resource about captive insurance to both members and regulators, to provide networking and marketing opportunities to individuals and organizations involved with captives, and to advocate for state and national policies that encourage the utilization of captive insurance for risk management.
Contact: Megan Woodburn, CAE
Title: Association Manager
Email address: email@example.com
Texas Captives Insurance Association - 401 W. 15th St, Ste. 695 Austin, TX 78701 - firstname.lastname@example.org