Sec. 964.001. DEFINITIONS. (a) In this chapter:
(1) "Affiliated company" or "affiliate" has the meaning assigned by Section 823.003 and includes a parent entity that controls a captive insurance company.
(2) "Captive insurance company" means a company that holds a certificate of authority under this chapter to insure the operational risks of the company's affiliates or risks of a controlled unaffiliated business.
(3) "Captive management company" means an entity providing administrative services to a captive insurance company.
(4) "Control" means the power to direct, or cause the direction of, the management and policies of an entity, other than the power that results from an official position with or corporate office held in the entity. The power may be possessed directly or indirectly by any means, including through the ownership of voting securities or by contract, other than a commercial contract for goods or nonmanagement services.
(5) "Controlled unaffiliated business" means a person:
(A) that is not an affiliate;
(B) that has an existing contractual relationship with an affiliate under which the affiliate bears a potential financial loss; and
(C) the risks of which are managed by a captive insurance company under Section 964.066.
(6) "Operational risk" means any potential financial loss of an affiliate, except for a loss arising from an insurance policy issued by a captive or insurance affiliate.
(7) "Redomestication" means the transfer to or from this state of the insurance domicile of an authorized captive insurer.
(b) Notwithstanding Section 30.003, in this chapter, "person" has the meaning assigned by Section 311.005, Government Code.
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 2, eff. June 14, 2013.
Section: 964.001 964.002 964.051 964.052 964.053 964.054 964.055 964.056 964.057 964.058 964.059 964.060 964.061 964.062 964.063 NextLast modified: September 28, 2016