Thursday, May 16, 2013

Texas Legislation may affect Nonadmitted Captive Insurers

Texas Senate Bill 734, legislation designed to draw back to Texas some of the captive companies affiliated with domestic corporations in the state, may have some effects for nonadmitted captives operating there.  In addition to the potential for additional companies to form captives, the Texas Comptroller has published a draft regulation (34 TAC Sec.3.835) that would provide for an unauthorized insurance premium tax for nonadmitted captive insurers.  NAPSLO members can view the full text of SB 734 through the StateNet portal on the NAPSLO website.

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