Haynes and Boone, LLP
  June 24, 2013 - United States of America

Texas Authorizes Domestic Pure Captive Insurance Companies
  by Micah E. Skidmore

On June 14, 2013, Governor Rick Perry signed legislation, which for the first time authorizes domestic captive insurers in Texas. The bill, known as SB 734, allows Texas businesses to realize the advantages, including tax benefits, of forming and operating a “pure” captive insurance company without the burden and cost associated with an out-of-state captive.

For those companies that already have a foreign captive in a state with pre-existing captive enabling legislation, the statute provides for redomestication to Texas for those captives meeting the standards set forth in SB 734. As a significant additional incentive, the bill authorizes the Texas Commissioner of Insurance (the “Commissioner”) to “postpone or waive the imposition of any taxes or fees under this code for a period not to exceed two years for any foreign or alien captive insurance company redomesticating to this state.”

Here are a few of the significant provisions from SB 734, which will be codified at Chapter 964 of the Texas Insurance Code.

 

If you have any questions about the newly enacted Chapter 964 of the Texas Insurance Code or about captive insurance companies in general, please contact one of the Haynes and Boone Insurance Coverage Litigation Practice Group partners listed below.

Erika L. Bright
214.651.5120
[email protected]

Werner A. Powers 
214.651.5581
[email protected]

 

Matt W. Holley
214.651.5371
[email protected]

 

Micah E. Skidmore
214.651.5654
[email protected]

Ernest Martin, Jr. 
214.651.5641
[email protected]

 

David Taubenfeld
214.651.5531
[email protected]

 

Leslie C. Thorne
512.867.8445
[email protected]




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