SECTION 6.104. Administrative Services Contracts

(a) A captive insurance company through its governing body may retain one or more captive management companies registered under this chapter to provide administrative services and implement the governing body's policies.

(b) With the written consent of the captive insurance company, a captive management company may contract with another captive management company to provide administrative services.

(c) The captive insurance company retains ultimate accountability and responsibility for compliance with all statutory and regulatory requirements. The captive insurance company may not enter into an agreement with a captive management company or other person that in any way limits, or may be construed to limit, the captive insurance company's ultimate accountability and responsibility for compliance with all statutory and regulatory requirements.

(d) Subsection (c) of this section does not limit the captive management company's obligations under any contract or the captive management company's duty to comply with all statutory and regulatory requirements.

(e) If an administrative service requires a license or certificate of authority under the Insurance Code or other law, a captive management company must have the required license or certificate of authority to provide the service.

Source Note: The provisions of this §6.104 adopted to be effective April 27, 2014, 39 TexReg 3232