Sec. 964.053. FORMATION. (a) A captive insurance company must be formed for the purpose of engaging in the business of insurance under this chapter.
(b) A captive insurance company may be formed and operated in any form of business organization authorized under the Business Organizations Code except a risk retention group or general partnership. A captive insurance company may only be formed as a nonprofit corporation if it is controlled by a nonprofit corporation.
(c) The certificate of formation of a captive insurance company must include:
(1) the name of the company, which may not be the same as, deceptively similar to, or likely to be confused with or mistaken for any other existing business name registered in this state;
(2) the location of the company's principal business office;
(3) the type of insurance business in which the company proposes to engage;
(4) the number of directors or members of the governing body of the company;
(5) the number of authorized shares and the par value of the company's capital stock for a captive insurance company formed as a corporation;
(6) the amount of the company's initial capital and surplus; and
(7) any other information required by the commissioner as necessary to explain the company's objectives, management, and control.
(d) The board of directors or governing body of a captive insurance company formed in this state must have at least three members, and at least one of the members must be a resident of this state.
(e) The certificate of formation or bylaws of a captive insurance company must authorize a quorum of the board of directors or governing body to consist of not fewer than one-third of the fixed number of directors or members of the governing body.
Added by Acts 2013, 83rd Leg., R.S., Ch. 569 (S.B. 734), Sec. 2, eff. June 14, 2013.
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