SECTION 6.305. Sale of a Covered Affiliate

Latest version.

(a) Except as provided in subsection (b) of this section, a captive insurance company is prohibited from providing insurance coverage to a former affiliate or reinsurance to an insurer covering the operational risks of the former affiliate after the effective date on which the affiliation ceases, including the effective date of the sale of the affiliate.
(b) The captive insurance company may provide insurance coverage to the former affiliate if the captive insurance company provides information acceptable to the commissioner that the coverage being provided meets the requirements to be categorized as a controlled unaffiliated business under §6.202(c) of this title (relating to Captive Insurance Company Certificate of Authority Application Contents and Process).

Source Note: The provisions of this §6.305 adopted to be effective April 27, 2014, 39 TexReg 3232

                    
                        var val = document.getElementById('citecontent').innerHTML;
                        art.dialog.defaults.title = window.location.href;
                        art.dialog.data('cite', val);
                        art.dialog.data('homeDemoPath', '/Scripts/plus/artDialog/');
                        art.dialog.open('/Scripts/plus/artDialog/citeiframe.html');